Greek Finance Minister Evangelos Venizelos warned lawmakers they must implement further austerity to lead Greece out of a “dead end,” as the government prepared to put a vote to parliament that risks stoking social unrest.
Tear gas was fired in central Athens as protesters clashed with police for a second day outside the parliament building where lawmakers debated the austerity bill, the second in four months. Prime Minister George Papandreou convened a meeting of his Cabinet as he prepared to test his party’s unity with a final vote on the legislation later today. No time has yet been set for the ballot.
The urgency was underlined by the latest report by outside assessors on Greece’s finances that recommended paying the next installment of bailout money to Greece “as soon as possible” after the government makes good on its austerity pledges.
“We must tell Greeks the truth,” Venizelos said in aa speech to parliament in comments broadcast live. “There are no miracles. The country won’t be saved by some miracle. The miracle will be the result of hard work.”
A group of about 200 hooded youths threw stones and Molotov cocktails at demonstrators from the Communist Party of Greece- backed PAME labor union who had formed a ring around the parliament early today to protest the austerity measures. People with head wounds were taken to a first-aid station in Syntagma Square, the focus of the demonstrations. Police said there about 50,000 protesters and 2,500 officers encircling parliament.
‘Credibility Ticket’
With a four-seat parliament majority, Papandreou is banking on his Pasok party to face down the public anger and pass the measures that are a precondition for continued international aid. Venizelos said the bill was a “credibility ticket” for a meeting of euro-area finance ministers tomorrow and an Oct. 23 summit of European leaders that will discuss potential cuts in Greece’s debt load as part of a package to halt the crisis.
Papandreou was due to brief his ministers today on “current economic developments” ahead of the European Union summit that aims to consider Greece’s finances as well as leveraging the euro rescue fund and bank recapitalizations as part of a plan to stamp out the debt crisis.
