Thousands gather in protest as parliament decides whether to approve new austerity measures in 2013 budget
The Greek government faces another test on Sunday evening when MPs vote on a 2013 budget that requires approval for the country to receive further financial aid.
The legislation will impose deep spending cuts on the country's already battered economy, as international lenders demand further austerity in return for assistance. Antonis Samaras's coalition is expected to win the vote just four days after it only narrowly won approval for a multi-year, €13.5bn (£10.8bn) austerity package.
Thousands of people gathered outside the Greek parliament in Syntagma Square, Athens, to urge MPs to vote down the budget. Leading the protest march were flag-waving unionists with the communist-aligned Pame party followed by private and public sector workers.
The protesters' chants included "Out, out, out with the IMF" and "Hands off workers' rights".
There was also drama inside the Athens chamber where opposition MP Stathis Panagoulis, of the leftwing Syriza party, warned that Greece faces "civil war", and that politicians risk being "lynched" and "murdered" as a result of the austerity measures. The budget includes hefty cuts in pensions and public sector wage reductions, agreed through torturous negotiation with Greece's "Troika" of lenders, the IMF; European Commission and European Central Bank. It also contains dire economic forecasts. Greece's national debt is predicted to hit nearly 190% of GDP next year – much higher than when its second bailout was agreed in March. The budget warns that Greece's long recession will continue, with GDP shrinking by another 4.5% in 2013. Economists say the projections show that Greece cannot meet its targets without the two-year extension which Samaras has been quietly urging fellow European leaders to support.
Last week's austerity package was eventually approved by just 153 of the 300 MPs in the chamber. Junior partner Democratic Left abstained in protest at labour market reforms, but the leftwing party is thought to support the new budget.
Greece faces a nervous wait for its next tranche of bailout cash even if the budget is approved, with eurozone leaders unlikely to agree on a payment date when they meet on Monday.
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