Greek Parliament Approves Huge Spending Cuts
Greek lawmakers approved a set of controversial spending cuts Thursday aimed at saving the country from bankruptcy, as demonstrators crowded around the parliament building in Athens to protest the measures.
Thousands of demonstrators chanted and waved flags as the legislators debated the budget cuts. The crowd was subdued compared to Wednesday, when three people died after protesters set fire to a bank in central Athens.
Greece is required to adopt the cuts as part of a controversial $145-billion loan deal with the European Union and the International Monetary Fund.
The $30 billion in spending cuts includes wage freezes and rollbacks in civil-service pensions. Critics say the measures disproportionately hurt the poor.
An estimated 100,000 Greeks flooded the streets Wednesday to protest the cuts.
As parliamentary debate opened Thursday, Greek Finance Minister George Papaconstantinou told lawmakers the country's only hope of avoiding bankruptcy is to agree to terms of the austerity plan.
The Greek debt crisis has rattled investors worldwide, with analysts and investors voicing concerns that the crisis could hurt other European countries, including Portugal and Spain.
But the head of the European Central Bank, Jean-Claude Trichet, downplayed fears that the crisis could spread to other nations. After a meeting Thursday with other top officials at the bank, Trichet said they did not discuss additional measures to support governments, such as buying government bonds.
European stock prices were mixed Thursday as investors awaited the outcome of the parliamentary vote.
Bank officials continued their policy of trying to encourage economic growth by keeping interest rates at a record low (of one percent).
fuente: http://www1.voanews.com
Thousands of demonstrators chanted and waved flags as the legislators debated the budget cuts. The crowd was subdued compared to Wednesday, when three people died after protesters set fire to a bank in central Athens.
Greece is required to adopt the cuts as part of a controversial $145-billion loan deal with the European Union and the International Monetary Fund.
The $30 billion in spending cuts includes wage freezes and rollbacks in civil-service pensions. Critics say the measures disproportionately hurt the poor.
An estimated 100,000 Greeks flooded the streets Wednesday to protest the cuts.
As parliamentary debate opened Thursday, Greek Finance Minister George Papaconstantinou told lawmakers the country's only hope of avoiding bankruptcy is to agree to terms of the austerity plan.
The Greek debt crisis has rattled investors worldwide, with analysts and investors voicing concerns that the crisis could hurt other European countries, including Portugal and Spain.
But the head of the European Central Bank, Jean-Claude Trichet, downplayed fears that the crisis could spread to other nations. After a meeting Thursday with other top officials at the bank, Trichet said they did not discuss additional measures to support governments, such as buying government bonds.
European stock prices were mixed Thursday as investors awaited the outcome of the parliamentary vote.
Bank officials continued their policy of trying to encourage economic growth by keeping interest rates at a record low (of one percent).
fuente: http://www1.voanews.com
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