Greek parliament approves debt bill

Feb 13 2012

Greece's parliament has approved an austerity and debt-relief bill, crucial for the country to avoid bankruptcy and remain in the eurozone.

Politicians voted in favour of the bill that imposes harsh new austerity measures in return for a 130 billion euro new bailout agreement and related deal with private creditors to shave 100 billion euro off the country's national debt.

The vote occurred after extensive rioting and looting swept through the Greek capital.

Rioters in central Athens torched buildings, looted shops and clashed with riot police ahead of the vote.

The clashes erupted after more than 100,000 protesters marched to the parliament to rally against the drastic cuts, which will axe one in five civil service jobs and slash the minimum wage by more than a fifth.

At least 10 buildings were on fire, including a cinema, bank and cafeteria, and looters smashed dozens of shops in the worst riot damage in years.

Dozens of police officers and at least 37 protesters were injured, 23 suspected rioters were arrested and a further 25 detained.

As the vote got under way, Greek prime minister Lucas Papademos urged calm, pointing to the country's dire financial straits. "Vandalism and destruction have no place in a democracy and will not be tolerated," Mr Papademos told Parliament. "I call on the public to show calm. At these crucial times, we do not have the luxury of this type of protest. I think everyone is aware of how serious the situation is."

The Greek coalition government later expelled 43 deputies from its ranks in parliament, over dissent in a crucial debt vote. The Socialists and conservatives expelled 22 and 21 politicians, respectively, from their parliamentary groups, reducing their majority in the 300-seat parliament from 236 to 193.

A third coalition partner, the rightist LAOS party, effectively withdrew from the government after its leader publicly opposed the deal.