Greek parliament approves budget
AFP PHOTO / LOUISA GOULIAMAKI
Greek MPs have given approval to the 2013 budget amid protests at its tough tough austerity measures.
The parliament voted for the budget in the early hours of 12 November by 167 votes to 128, a more comfortable margin than the one which saw the government scrape by the debate on the austerity package held last week. That debate saw the government narrowly win, with 153 out of 300 votes. The left-wing junior coalition partner, Democratic Left, voted against the package.
The passing of the budget means that Greece can now avail of the next round of bailout money, worth €31.5 billion, from its international creditors.
Prime Minister Antonis Samaras had warned that without it, the country would face bankruptcy within days. However, complications, not least that it is subject to approval from other EU member states, may delay payment. Samaras is due to travel to Brussels today (12 November) where Eurozone finance ministers are meeting to discuss the situation. It is unlikely they will come to any agreement, thus increasing the wait.
As MPs voted inside, outside the parliament an estimated 10,000 protesters gathered to denounce the austerity cuts, with certain trade unions calling for its rejection by parliamentarians.
The budget proposes deep cuts to public sector wages and pensions. The retirement age is to be raised from 65 to 67, while salary cuts for a range of public services are proposed, including for the police army, fire service and judiciary. There are also proposed changes to holiday benefits and cuts to severance pay and the minimum wage.
The budget also included gloomy economic forecasts, with the economy expected to contract by 4.5% next year and public debt likely to increase to 189% of GDP. new europe on line
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