June 28, 2011
Some 20,000 Greeks have taken to the streets in protest of crucial but unpopular austerity measures up for parliamentary vote on Wednesday. But if the embattled government fails to approve the plan, it will fail to qualify for the next tranche of its EU bailout package, leading to insolvency.
Investors around the world watched renewed protests in Greece warily on Tuesday, just one day ahead of the critical parliamentary vote on a third austerity package. The bill, worth €28 billion ($40 billion), must be passed in order for the country to receive the next €12 billion tranche of the €110 billion bailout package approved by the European Union and the International Monetary Fund last summer.
Without this money, default would be imminent.
Despite the dire situation, doubts remain as to whether Greek Prime Minister Giorgios Papandreou will be able to convince a parliamentary majority to vote in its favor on Wednesday. The prime minister's ruling socialists hold 155 of 300 seats, but two of their parliamentarians have threatened to vote against the measures.
Meanwhile angry and disillusioned protestors, led by major unions that called an unusual 48-hour strike, aim to block the passage of the new austerity measures. Gathering in front of the parliament building in Athens, they railed against the plans, which include tax increases, spending cuts and the privatization of government assets -- including harbors, the state postal service, waterworks, airplanes and the horse racing license.
As the parliamentary debate on the packages began, Papandreou implored lawmakers to vote in its favor, calling it the country's last chance to get back on its feet. "I call on you to vote for survival, growth, justice and a future for the citizens of this country," Papandreou told MPs, according to news agency AP.
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