Greek parliament votes in favour of austerity measures

Greece's parliament has voted in favour of the hefty cuts and reforms proposed by the government to address the country's financial crisis.

With 172 of 300 votes in favour, one report said a second vote would have to be passed for the bill to become law.

The vote comes a day after three bank workers died in a petrol bomb attack as demonstrations over the planned austerity measures turned violent.

The finance minister said the measures were the only way to avoid bankruptcy.

But as the vote was held demonstrators gathered outside parliament to protest against the measures.

Wednesday's deaths have shocked many in Greece. Bank workers have gone on strike in anger at the loss of their colleagues.

Speaking in parliament ahead of the vote, Prime Minister George Papandreou said violence was "not a solution".

"The future of Greece is at stake," he said. "The economy, democracy and social cohesion are being put to the test."

He expelled three Socialist deputies from his parliamentary team for abstaining in the vote.

The expulsions still leave Mr Papandreou with a majority of members in the house (157 out of 300).

'Avoid bankruptcy'

Greek finance minister George Papaconstantinou has warned Greece is two weeks away from defaulting on part of its debt; bonds worth 8.5bn euros ($12bn; £7.2bn) fall due on 19 May.

"The state's coffers don't have that money," he told parliament earlier. "Because today... the country can't borrow it from the international market.

"And because the only way for the country to avoid bankruptcy and suspension of payments is to take the money from our European partners and the International Monetary Fund."

But in order to receive the 110bn euro ($142bn; £95bn) bail-out, Greece must agree to a three-year austerity programme, he said.

The measures include wage freezes, pension cuts and tax rises.

The aim is to achieve fresh budget cuts of 30bn ($38bn; £25bn) euros over three years, with the goal of cutting Greece's public deficit to less than 3% of GDP by 2014. It currently stands at 13.6%.

'Fair demands'

Wednesday's deaths - the first such fatalities in protests in nearly 20 years in Greece - have shocked many people in Greece.
The Marfin bank branch where the two women - one pregnant - and a man died has become the focus for grieving, with a steady stream of flowers being placed at the front door by people paying their respects, the BBC's Duncan Kennedy in Athens reports.

Shops and businesses have been clearing up after the riots. Many are boarded up, others are burnt out shells, he adds.

Bank workers took to the streets on Thursday to demonstrate their outrage at the deaths.

President Karolos Papoulias has warned Greece is on the "brink of the abyss".

"We are all responsible so that it does not take the step into the void," he said in a statement.

However, unions have been undeterred by Wednesday's events, urging members to continue demonstrating.

The GSEE private sector union condemned the "fires, blind violence, vandalism", but added: "We are determined to pursue and extend our struggle to meet our fair demands."

http://news.bbc.co.uk/2/hi/europe/8664161.stm