Economist
July 1, 2011
Greece has gained some breathing space in its struggle to avoid a messy default.
If all goes according to plan during this weekend’s consultations by the eurogroup—a teleconference of finance ministers of countries that belong to the currency—Greece’s creditors will shortly agree on a fresh bail-out package to replace the €110 billion agreed a year ago.
Athens now expects to receive a €12 billion loan tranche within a fortnight from its European Union partners and the International Monetary Fund, which should enable the government to meet debt redemptions and pay civil servants' salaries at the end of the month.
But the domestic cost has been high. Almost 200 people received hospital treatment after anti-austerity riots outside parliament on the night of Wednesday’s vote, which the governing PanHellenic Socialist Movement (PaSok) party won by 155 votes to 138. Seventeen extremists face charges of inciting violence. Three days later, teargas fumes were still wafting through narrow streets and shops around central Syntagma square, scene of the worst clashes.
A prosecutor is investigating claims of excessive police violence, denied by Christos Papoutsis, the citizens’ protection minister. The tourism ministry, worried by reports that wealthy Americans were cancelling trips to Athens, released a statement claiming that the protests “did not represent in any way everyday life in the city” and that visitors “continue to enjoy a secure and tranquil environment”.
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