| Author (Person) | Hope, Kerin, Wilson, James |
|---|---|
| Series Title | Financial Times |
| Series Details | 13.2.12 |
| Publication Date | 13/02/2012 |
| Content Type | News |
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The Greek Parliament approved a tough austerity package at a special sitting on the 12 February 2012 aimed at averting a default, but the vote was overshadowed by violent street protests in central Athens and dozens of arson attacks against shops and banks. The legislation passed by 199 votes in favour to 74 against, a convincing majority for Lucas Papademos, the caretaker prime minister who had been given the job of pushing through painful reforms demanded by the European Union and the International Monetary Fund in return for a second €130bn bail-out. Before the vote Mr Papademos warned the €3.3bn package of cuts was 'the only alternative to a catastrophic default ... that would force Greece, sooner or later, to leave the euro'. 'The social cost of this package is limited in comparison with the social and economic disaster that would follow if it is not adopted', he said. Now the package had been approved, the leaders of Greece’s two main parties, the PanHellenic Socialist Movement and conservative New Democracy party, had to make a written commitment to implement the programme fully, regardless of who won a snap general election expected in April 2012. The European Union and International Monetary Fund had made clear that further funds would not be released without the party leaders’ signatures. Their insistence highlights Greece’s persistent failure to complete fiscal and structural reforms agreed in return for a previous €110bn bail-out in 2010. |
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| Countries / Regions | Europe, Greece |
