Greek protesters encircle parliament as new austerity measures approved

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Tens of thousands of Greek citizens marched in the center of Athens on Thursday the 6 May,

2010; afternoon, encircling the parliament building, while inside in the parliament the bill on the

new austerity measures was to be approved.

Denouncing for one more time the further cutbacks on salaries and tax hikes that paved the way

for the EU-IMF financial support, protesters raised their voices against violence that marred
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Wednesday's (5 May, 2010) similar demonstration, ending in the tragic death of three bank

employees.

They died of asphyxiation in the fire that broke out when a group of hooded anarchists threw
petrol bombs against the bank's building, situated near the parliament.

Still in shock, members of families, friends and thousands of citizens stopped by the place of the

tragedy to place flowers, light candles and hold three minutes of silence, as the new rally

started, honoring the victims.

In the meantime, police reviewed traffic camera footage and all related evidence in order to find

the perpetrators.

During the Wednesday’s protest, a group of people tried to storm the parliament building, while

anarchists torched other state buildings, such as the Finance Ministry and a Tax Office, apart

from attacks against banks, hotels and shops.

According to the police estimates, 55 people were injured on Wednesday (5th May, 2010),

among them 41 policemen, 70 protesters were apprehended and 25 were already brought
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before public prosecutors on the very next day on Thursday; the 6 May, 2010.

Twelve buildings suffered extensive damages, 28 stores were broken, 10 banks were attacked

and seven cars were set on fire.

Greek labor unions of public and private sector employees ADEDY, GSEE, as well as unions

close to the two left parties represented in parliament that called for Thursday's protest, made

repeated pleas for calm.

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 Greek protesters encircle parliament as new austerity measures approved

They have also asked citizens to turn off the lights of homes and offices for ten minutes at 8:50

p.m. local time (1750 GMT) in a signal of protest against austerity measures and violence.

Chanting slogans such as "Bring back the money you stole" and raising banners with slogans

such as "We did not steal, we do not pay," people vowed to continue strikes and demonstrations

"until the end."

As a 24-hour strike of bank and local government employees was held on Thursday and

pharmacies will remain closed on Friday, GSEE and ADEDY plan new actions for next week

and possibly a new 48- hour general strike, as the parliament will be voting on the reform of the
pension system.

The Greek parliament approved on Thursday afternoon the bill on a new package of austerity

measures in exchange for financial support by EU and the International Monetary Fund (IMF),

with 172 votes in favor and 121 against. A total 296 members of parliament were present during

the vote.

The bill was approved with the votes of most of ruling socialist PASOK party's members of

parliament, plus the votes of the members of the parliamentary group of far-Right Popular

Orthodox Rally party (LAOS) and that of former Foreign Minister Dora Bakogiannis.

Leader of main opposition New Democracy party Antonis Samaras expelled Bakogiannis from

the ranks of the center-right party's parliamentary group, as he had asked all party MPs to vote

against the bill.

PASOK holds a majority of 160 seats in the 300-member parliament. Opposition parties voted

against the bill.

George Karatzaferis, President of LAOS, said that his party supported the bill because the

alternative would be disaster for the country.

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 Greek protesters encircle parliament as new austerity measures approved

Protestors gather in front of the parliament building while austerity measures bill has been passed in Athens, capital of Greece, on

May 6, 2010. The Greek parliament on Thursday approved the bill on measures relating to the support mechanism by the euro zone
and International Monetary Fund. (Xinhua/Phasma)

A protestor stands in front of the parliament building while austerity measures bill has been passed in Athens, capital
of Greece, on May 6, 2010. The Greek parliament on Thursday approved the bill on measures relating to the support

mechanism by the euro zone and International Monetary Fund. (Xinhua/Phasma)

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 Greek protesters encircle parliament as new austerity measures approved

Protestors gather in front of the parliament building while austerity measures bill has been passed in Athens, capital

of Greece, on May 6, 2010. The Greek parliament on Thursday approved the bill on measures relating to the support
mechanism by the euro zone and International Monetary Fund. (Xinhua/Phasma)

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 Greek protesters encircle parliament as new austerity measures approved

Protestors gather in front of the parliament building while austerity measures bill has been passed in Athens, capital

of Greece, on May 6, 2010. The Greek parliament on Thursday approved the bill on measures relating to the support
mechanism by the euro zone and International Monetary Fund. (Xinhua/Phasma)

Planned austerity measures have prompted riots in Athens

Austerity measures planned by the Greek government have been met with violent protests in Athens.

Whole rafts of measures, which include huge cuts to Greece's public sector, have been announced since
December 2009, when the Greek government acknowledged the need to tackle Greece's dire public finances.

The plans hope to achieve budget cuts of 30bn 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%.

Implementing them is also a condition of Greece receiving the billions of Euros in loans it needs as part of the
EU-IMF rescue deal agreed this month.

So what are the measures being proposed?

PAY CUTS

The government is planning a freeze pay for all public sector workers.

Some pay cuts will also be implemented, and public sector contract workers are set to lose their jobs. This
follows several years of continuous increases in pay, with salaries rising by an average of 30% since 2006.

Annual bonus payments - paid as 13th and 14th month salaries - will also be scrapped for high earners and
capped for lower earners.

Other bonuses will be scrapped. In the private sector, the legal maximum number of people companies can lay
off each month will be doubled from 2% of personnel to 4%.

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 Greek protesters encircle parliament as new austerity measures approved

PENSIONS

The reforms seek to prevent early retirement. Currently the average age of retirement in Greece is 61, though it
is not uncommon for public sector workers to retire in their 50s.

Under the planned changes, the retirement age, which is currently 65 years for men and 60 years for women,
will be linked to average life expectancy.

In addition, the minimum number of years someone will have had to have worked to qualify for a full pension
will rise to 40 years from 37.

Pensions will also be reduced so that they reflect a worker's average working pay rather than their final salary.

TAX REFORM

VAT will be increased to 23% from 21% - just the latest in a series of recent increases.

Indirect taxes - including those on alcohol, fuel and cigarettes - will see a 10% rise.

There will also be a clamp-down on tax evasion - widely regarded as a big problem in Greece - and on untaxed
illegal construction.

Tax-evasion alone is estimated to cost the Greek government at least 20bn Euros a year.

PRIVATISATION

In the longer-term, the government will look to reduce the reliance of the Greek economy on the public sector,
reducing the number of people on the public payroll.

This will require growth in the private sector, and possible privatisation of some industries.

ATHENS, Greece — The Greek parliament was voting Thursday on harsh austerity measures needed to release
euro110 billion ($140 billion) in rescue loans from the other 15 euro-zone countries and the International Monetary
Fund - money Greece urgently needs to avoid defaulting on its debts.

The governing Socialists hold 160 of parliament's 300 seats, and the bill was expected to easily win the simple
majority needed for passage.

Many Greeks have been outraged by the measures, which slash salaries and pensions for civil servants and hike
consumer taxes. On Wednesday, large demonstrations degenerated into violence, and three people were killed when
they became trapped in a bank set on fire by protesters.

Hundreds of protesters gathered outside parliament during the vote to protest the measures and the deaths, the first
such fatalities in a protest in Greece in nearly 20 years.

In a heated debate ahead of the vote, the prime minister and finance minister insisted the rescue package was the
only hope for the country to avoid bankruptcy.

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 Greek protesters encircle parliament as new austerity measures approved

"Today things are simple. Either we vote and implement the deal, or we condemn Greece to bankruptcy," Prime
Minister George Papandreou said.

"Some people want that, and are speculating (on it), and hope that it will happen," he said, referring to speculative
attacks that have been blamed for raising Greece's borrowing costs to unsustainable levels. "We, I, will not allow that.
We will not allow speculation against our country, and bankruptcy to happen."

The rescue loans are aimed at containing the debt crisis and keeping Greece's troubles from spreading to other
countries with vulnerable state finances such as Portugal and Spain. The money will come from the International
Monetary Fund and the 15 other governments whose countries use the euro.

Fears of Greek default have undermined the euro, and while the current package should keep Greece from
immediate bankruptcy its long term prospects are unclear. Its growth prospects are weak, and the population's
willingness to accept cutbacks may wane, leading some economists to predict an eventual debt restructuring
somewhere down the road.

Finance Minister George Papaconstantinou said the government had no choice but to impose the austerity
measures, which were being rushed through Parliament as urgent legislation because the country was two weeks
away from default, with euro8.5 billion worth of bonds maturing on May 19.

"The state's coffers don't have that money," Papaconstantinou said. "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 funds, Greece must agree to a three-year austerity program.

"We are asking for loans from countries that also have deficits and from countries that are also the subject of
speculative attacks. And for those to be granted, we must persuade them that we are putting our house in order,"
Papaconstantinou said.

But the opposition lambasted the government for imposing measures that are too harsh for the population to bear.

"The dose of the medicine you are administering is in danger of killing the patient," said main opposition leader
Andonis Samaras, who has said his party will vote against the austerity bill.

"You know that these measures have sparked a social explosion ... The citizens of this country have to believe there
is a way out. Because whoever cuts pensions of euro700 cannot convince anyone."

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 Greek protesters encircle parliament as new austerity measures approved

A worker walks out of the Prefecture building where he is surrounded by shattered glass, in central Athens, on Thursday, May 6,
2010. Riots broke out across Athens during a massive protest Wednesday against drastic austerity measures introduced to secure

rescue loans for the country's near-bankrupt economy. Lawmakers began debating the measures and were due to approve them
later Thursday. (AP Photo/Petros Giannakouris

A burned car and broken glass window are seen, in central Athens, with Hadrians Gate and a sight seeing bus in the background,
on Thursday, May 6, 2010. Riots broke out across Athens during a massive protest Wednesday against drastic austerity measures
introduced to secure rescue loans for the country's near-bankrupt economy. Lawmakers began debating the measures and were
due to approve them later Thursday.(AP Photo/Petros Giannakouris)

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 Greek protesters encircle parliament as new austerity measures approved

A pedestrian walks by a closed bank where the spray paint on the closed shutters reads: "general strike forever" in Central Athens, on Thursday, May
6, 2010. Bank unions have declared a general strike for the mourning of the three dead colleagues. Riots broke out across Athens during a massive
protest Wednesday against drastic austerity measures introduced to secure rescue loans for the country's near-bankrupt economy. Lawmakers began
debating the measures and were due to approve them later Thursday. (AP Photo/Nikolas Giakoumidis)

Pedestrians stand by a closed shop in Central Athens, opposite Marfin Egnatia Bank with a spray text on the shutters reading: " My
country provokes horror" on Thursday, May 6, 2010. Riots broke out across Athens during a massive protest Wednesday against
drastic austerity measures introduced to secure rescue loans for the country's near-bankrupt economy. Lawmakers began debating
the measures and were due to approve them later Thursday. (AP Photo/Nikolas Giakoumidis)

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 Greek protesters encircle parliament as new austerity measures approved

Flowers and a stuffed teddy bear deposited near the broken and burnt window of the Marfin Egnatia Bank where three employees
burnt to death Wednesday in central Athens, on Thursday, May 6, 2010. Riots broke out across Athens during a massive protest
Wednesday against drastic austerity measures introduced to secure rescue loans for the country's near-bankrupt economy.
Lawmakers began debating the measures and were due to approve them later Thursday. (AP Photo/Nikolas Giakoumidis)

A man lays flowers while another crosses himself in front of the burnt and broken window of the Marfin Egnatia Bank where three
people died Wednesday in a fire, in central Athens, on Thursday, May 6, 2010. Riots broke out across Athens during a massive
protest Wednesday against drastic austerity measures introduced to secure rescue loans for the country's near-bankrupt economy.
Lawmakers began debating the measures and were due to approve them later Thursday. (AP Photo/Nikolas Giakoumidis)

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 Greek protesters encircle parliament as new austerity measures approved

A begger sits under the windows of the Numismatic Museum in central Athens, built in the 19th century as a home for German
archaeologist Heinrich Schliemann who excavated Troy, on Thursday, May 6, 2010. The slogan on the wall reads "Revolt is a right."
Riots broke out across Athens during a massive protest Wednesday against drastic austerity measures introduced to secure rescue
loans for the country's near-bankrupt economy. Lawmakers began debating the measures and were due to approve them later
Thursday. (AP Photo/Nikolas Giakoumidis)

The Bank of Greece representative George Tavlas, left, talks with the Governor of the Bank of Belgium Guy Quaden during a
meeting of the Governing Council of the European Central Bank in Lisbon Thursday, May 6 2010. Fears that the Greek debt crisis is
spiraling out of control could push the European Central Bank to take an even bigger role in stabilizing the situation and rescuing the
euro from the worst crisis since it was created 11 years ago. (AP Photo/Miguel A. Lopes/Pool)

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 Greek protesters encircle parliament as new austerity measures approved

Greek Prime Minister George Papandreou speaks during a debate in Parliament on the country's planned new austerity measures
on Thursday, May 6, 2010. Papandreou said Greece's only hope of avoiding bankruptcy is to approve the measures to secure
money from a joint EU and International Monetary Fund rescue package. He spoke during a heated debate overshadowed by the
deaths of three people during protests against spending cuts. The 300-member house, in which the governing Socialists hold a
strong majority, was due to approve the law later Thursday. (AP Photo/Petros Giannakouris)

At a damaged bus stop in central Athens, two elderly people sit at a bus stop, while a young woman passes by on Thursday, May 6,
2010. Riots broke out across Athens during a massive protest Wednesday against drastic austerity measures introduced to secure
rescue loans for the country's near-bankrupt economy. Lawmakers began debating the measures and were due to approve them
later Thursday. The spray paint on the shattered glass of the bus stop reads: “Class Hate". (AP Photo/Petros Giannakouris)

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 Greek protesters encircle parliament as new austerity measures approved

Bank employees, trapped by fire, look over the balcony ledge during an anti-government protest in central Athens, Wednesday, May
5, 2010. Three people died in the fire at the branch of Marfin Egnatia Bank, while the two women and two others were rescued. An
estimated 100,000 people took to the streets Wednesday during a nationwide wave of strikes against spending cuts aimed at saving
the country from bankruptcy (AP Photo/Iakovos Hatzistavrou)

Bank employee react after a fire broke out when the bank was attacked during anti-government protests in central Athens,
Wednesday, May 5, 2010. Three people died in the fire at the branch of Marfin Egnatia Bank, while the two women and two others
were rescued. An estimated 100,000 people took to the streets Wednesday during a nationwide wave of strikes against spending
cuts aimed at saving the country from bankruptcy (AP Photo/Iakovos Hatzistavrou)

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 Greek protesters encircle parliament as new austerity measures approved

A bank employee reacts after being rescued from a fire that broke out when the bank was attacked during anti-government protests
in central Athens, Wednesday, May 5, 2010. Three people died in the fire at the branch of Marfin Egnatia Bank, while the two
women and two others were rescued. An estimated 100,000 people took to the streets Wednesday during a nationwide wave of
strikes against spending cuts aimed at saving the country from bankruptcy (AP Photo/Iakovos Hatzistavrou)

A pedestrian walks by a broken store window in central Athens, on Thursday, May 6, 2010. Riots broke out across Athens during a
massive protest Wednesday against drastic austerity measures introduced to secure rescue loans for the country's near-bankrupt
economy. Lawmakers began debating the measures and were due to approve them later Thursday. (AP Photo/Nikolas
Giakoumidis)

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 Greek protesters encircle parliament as new austerity measures approved

Forensic research is being carried out on the main burnt door of the Marfin Egnatia Bank branch of which three employees died
yesterday in central Athens, on Thursday, May 6, 2010. Riots broke out across Athens during a massive protest Wednesday against
drastic austerity measures introduced to secure rescue loans for the country's near-bankrupt economy. Lawmakers began debating
the measures and were due to approve them later Thursday.(AP Photo/Petros Giannakouris)

A man place flowers at a burned out window of the Marfin Egnatia Bank in central Athens, on Thursday, May 6, 2010. Riots broke
out across Athens during a massive protest Wednesday against drastic austerity measures introduced to secure rescue loans for
the country's near-bankrupt economy. Lawmakers began debating the measures and were due to approve them later Thursday.(AP
Photo/Petros Giannakouris)

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