Greece to debate austerity package under EU pressure

Reuters
June 26, 2011

Greece's parliament begins on Monday to debate a deeply unpopular austerity plan which international lenders are demanding to see approved this week to avert the threat of bankruptcy.

Greece's conservative opposition has rejected EU leaders' calls for national unity, forcing Prime Minister George Papandreou to rely on his slim parliamentary majority to push through the 28 billion-euro ($40 billion) package of tax increases and spending cuts.

Without approval for the measures, the European Union and International Monetary Fund say they will not disburse the fifth tranche of Greece's 110 billion-euro bailout programme.

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