(Image source: Bloomberg) 

 
 
BY ELIZABETH HAGEDORN
ANCHOR ZACH TOOMBS
 
 
 
 
The Greek parliament has approved a deeply slashed austerity budget, in hopes of convincing international lenders to unlock the latest installment of its economic bailout.

It’s a key step in the debt-ridden country’s efforts to meet the demands of the so-called troika --  the European Union, International Monetary Fund, and the European Central Bank  --- which require the country trim its budget by more than $17 billion before receiving any more bailout funds. The BBC has the latest. 

 “So what does the budget foresee? It’s very devastating. It foresees a 6th consecutive year of recession next year... the worst recession of any country  in modern history.  And public debt is likely to rise to staggering high levels.”

Earlier in the week, the Parliament narrowly voted to pass a separate austerity package designed to reduce the budget by 18 billion euros … this was met by a violent anti-austerity protest in Athens of more than 80,000 people.

167 members of the 300-member parliament voted for the austerity budget on Monday, which includes 9.4 billion euros in cuts to wages and pensions for public employees. But a writer for the New York Times suggests lawmakers voted yes only because they felt “compelled to do as their European creditors asked,” and in turn,

“Many of those creditors also know that more austerity is not the answer. But so far, they have been unwilling to challenge the leader of Europe’s biggest economy, Chancellor Angela Merkel of Germany, who continues to believe that only economic punishment will push Greeks to reform.”

The crucial vote comes just hours before the finance ministers from the 17-nation euro zone are set to meet in Brussels, during which bailout funds for Greece will likely be atop the agenda.

But any deal made at the meeting to keep Greece afloat could be met with some resistance from Germany --- the euro zone’s largest economy and one of the bailout fund's biggest contributors.

German Finance Minister Wolfgang Schauble told the German newspaper Die Welt ahead of Monday’s meeting that he didn’t expect a conclusion to be reached.

"We all ... want to help Greece, but we won't be put under pressure.”

A poll published in the newspaper To Vima on Sunday found that 66 percent of Greeks are opposed the austerity measures.

Greek Parliament OKs Austerity Budget

by Elizabeth Hagedorn
0
Transcript
Nov 11, 2012

Greek Parliament OKs Austerity Budget

(Image source: Bloomberg) 

 
 
BY ELIZABETH HAGEDORN
ANCHOR ZACH TOOMBS
 
 
 
 
The Greek parliament has approved a deeply slashed austerity budget, in hopes of convincing international lenders to unlock the latest installment of its economic bailout.

It’s a key step in the debt-ridden country’s efforts to meet the demands of the so-called troika --  the European Union, International Monetary Fund, and the European Central Bank  --- which require the country trim its budget by more than $17 billion before receiving any more bailout funds. The BBC has the latest. 

 “So what does the budget foresee? It’s very devastating. It foresees a 6th consecutive year of recession next year... the worst recession of any country  in modern history.  And public debt is likely to rise to staggering high levels.”

Earlier in the week, the Parliament narrowly voted to pass a separate austerity package designed to reduce the budget by 18 billion euros … this was met by a violent anti-austerity protest in Athens of more than 80,000 people.

167 members of the 300-member parliament voted for the austerity budget on Monday, which includes 9.4 billion euros in cuts to wages and pensions for public employees. But a writer for the New York Times suggests lawmakers voted yes only because they felt “compelled to do as their European creditors asked,” and in turn,

“Many of those creditors also know that more austerity is not the answer. But so far, they have been unwilling to challenge the leader of Europe’s biggest economy, Chancellor Angela Merkel of Germany, who continues to believe that only economic punishment will push Greeks to reform.”

The crucial vote comes just hours before the finance ministers from the 17-nation euro zone are set to meet in Brussels, during which bailout funds for Greece will likely be atop the agenda.

But any deal made at the meeting to keep Greece afloat could be met with some resistance from Germany --- the euro zone’s largest economy and one of the bailout fund's biggest contributors.

German Finance Minister Wolfgang Schauble told the German newspaper Die Welt ahead of Monday’s meeting that he didn’t expect a conclusion to be reached.

"We all ... want to help Greece, but we won't be put under pressure.”

A poll published in the newspaper To Vima on Sunday found that 66 percent of Greeks are opposed the austerity measures.

View More
Comments
Newsy
www2