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13 February 2012

FT: Athens passes demanded austerity bill


Greek lawmakers approved a tough austerity package aimed at averting a default.

The legislation passed by 199 votes in favour to 74 against, a convincing majority for Lucas Papademos, the caretaker prime minister who has been given the job of pushing through painful reforms demanded by the European Union and the International Monetary Fund in return for a second €130 billion bailout.

Yet almost 40 legislators from the socialist and conservative parties, the two remaining partners in his national unity government, were absent or voted against the measures, indicating strong opposition to structural reforms and cuts in wages and pensions.

Mr Papademos warned earlier the €3.3 billion 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.

Full article (FT subscription required)



© Financial Times


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