Post by hurricanemaxi on Feb 11, 2012 0:13:59 GMT -8
Greek Prime Minister Lucas Papademos obtained approval from his Cabinet for deeper budget cuts needed to secure a second package of international aid, clearing the latest hurdle in his race to prevent financial collapse.
Cabinet approved the 287-page document unanimously, said a government official, who declined to be named. The approval means the 300-seat Parliament will vote, probably tomorrow, on budget measures amounting to 7 percent of gross domestic product over the next three years and a debt swap to slice 100 billion euros off more than 200 billion euros of privately-held debt.
“The social cost this program implies will be limited compared to the economic and social catastrophe that would follow if we don’t adopt it,” Papademos told his ministers earlier, according to an e-mailed transcript of his comments. “The completion of the program and financial support will cement our country’s future in the euro area.”
The approval capped a week of tension in Athens as European Union and International Monetary Fund officials argued with Greek government officials over the conditions required to secure the 130 billion-euro ($172 billion) rescue package. Papademos reached agreement with the three party leaders supporting his interim government hours before a crucial meeting of euro area finance ministers in Brussels on Feb. 9, only to be told the measures needed more work.
Weeks Remaining
With only weeks remaining for the country to hold the largest debt restructuring ahead of a 14.5 billion-euro bond payment on March 20, Papademos saw five ministers resign in two hours and protesters clashing with police in Athens during an anti-austerity strike.
“It should be evident that whoever disagrees and doesn’t vote for the new program cannot remain in this government,” he told his ministers. Political uncertainty, he said, was the main reason for finance ministers failing to approve the program.
Failure to secure the rescue package threatens 11 million Greeks with a default that would halt the payment of wages and pensions and shut down schools, hospitals and businesses, Papademos said. Tomorrow’s vote amounts to a ballot on euro membership, Finance Minister Evangelos Venizelos said early yesterday in Brussels.
“If we see the salvation and future of the country in the euro area, in Europe, we have to do whatever we have to do to get the program approved,” he said.
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Cabinet approved the 287-page document unanimously, said a government official, who declined to be named. The approval means the 300-seat Parliament will vote, probably tomorrow, on budget measures amounting to 7 percent of gross domestic product over the next three years and a debt swap to slice 100 billion euros off more than 200 billion euros of privately-held debt.
“The social cost this program implies will be limited compared to the economic and social catastrophe that would follow if we don’t adopt it,” Papademos told his ministers earlier, according to an e-mailed transcript of his comments. “The completion of the program and financial support will cement our country’s future in the euro area.”
The approval capped a week of tension in Athens as European Union and International Monetary Fund officials argued with Greek government officials over the conditions required to secure the 130 billion-euro ($172 billion) rescue package. Papademos reached agreement with the three party leaders supporting his interim government hours before a crucial meeting of euro area finance ministers in Brussels on Feb. 9, only to be told the measures needed more work.
Weeks Remaining
With only weeks remaining for the country to hold the largest debt restructuring ahead of a 14.5 billion-euro bond payment on March 20, Papademos saw five ministers resign in two hours and protesters clashing with police in Athens during an anti-austerity strike.
“It should be evident that whoever disagrees and doesn’t vote for the new program cannot remain in this government,” he told his ministers. Political uncertainty, he said, was the main reason for finance ministers failing to approve the program.
Failure to secure the rescue package threatens 11 million Greeks with a default that would halt the payment of wages and pensions and shut down schools, hospitals and businesses, Papademos said. Tomorrow’s vote amounts to a ballot on euro membership, Finance Minister Evangelos Venizelos said early yesterday in Brussels.
“If we see the salvation and future of the country in the euro area, in Europe, we have to do whatever we have to do to get the program approved,” he said.
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seks vragen