Early Monday morning, after three days of intense negotiations, the Greek government approved the latest austerity measures demanded by other EU nations, the International Monetary Fund (IMF) and the European Central Bank (ECB) by a vote of 199 to 74. In return, they get the latest bailout of $171 billion that nation needs in order to avoid default on March 20th, when a $19.1 billion payment on its debts is due–if EU finance ministers approve the accord when they meet on Feb. 15. Greek Prime Minister, Lucas Papademos, who addressed the nation on Saturday night, had urged the Cabinet to approve the deal, warning of “social explosion, chaos” if it failed.
“We are a breath away from ground zero,” Mr. Papademos said in a televised address to the nation ahead of the critical vote, further noting that the envisioned austerity program will “restore the fiscal stability and global competitiveness of the economy, which will return to growth, probably in the second half of 2013.”
It’s been a tough sell. More than 3,500 people converged on Syntagma Square in Athens Saturday, marking the second day of protests and a general strike. Hundreds of riot police stood guard as a result of clashes that erupted during rallies on Friday, one of which illuminated the almost schizophrenic mindset that has arisen among the Greeks themselves: Greece’s largest police union, representing more than two-thirds of Greek policemen, threatened to issue arrest warrants for officials from Greece’s EU and IMF lenders because of their demands for the next round of austerity measures. “Since you are continuing this destructive policy, we warn you that you cannot make us fight against our brothers. We refuse to stand against our parents, our brothers, our children or any citizen who [protest and demand] a change of policy,” said a letter obtained by Reuters.
After Greece’s Parliament approved the measures, the violence got even worse. In Athens, a crowd estimated at over 100,000 vented their frustration. Rioters destroyed or seriously damaged 93 buildings and least 45 others were burned, including nine listed as national heritage sites. More than 150 stores were looted or smashed.
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