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Posted: Tuesday 28 June, 2011 at 11:30 PM

Clashes intensify as Greek parliament readies to vote

A riot policeman is hit by a stone during clashes with protesters in Athens. Greece faces a financial D-Day Wednesday as lawmakers vote on a tough austerity plan to secure new money from creditors to avoid sovereign default despite a last-ditch general st
By: Roddy Thomson, ATHENS (AFP)

    (ATHENS, GRC) - Clashes intensified Wednesday between protesters and police firing tear gas in Athens hours from a vote in parliament on austerity measures aimed at preventing a Greek debt default.

     

    On the second day of a 48-hour general strike, demonstrators massed around the parliament as deputies readied to decide on a 28.4 billion-euro ($40.8 billion) package of taxes, spending cuts and sell-offs scheduled for around 2:00 pm (1100 GMT).

     

    The measures are deemed crucial for Greece to secure international aid to stave off bankruptcy, which is threatening the stability of the eurozone.

     

    Right from 8:00 am (0500 GMT), police drove back a first wave of hundreds of demonstrators in front of the Hilton hotel in central Athens, who were making their way towards Syntagma Square, the parliament's home, and dispersed them with tear gas.

     

    "It's us or them," 40-year-old lawyer Rena Nenedaki told AFP. "The new budget plans and the deal with the EU and the IMF will destroy our country -- it will rip the guts out of workers, the unemployed and our children."

     

    Pockets of demonstrators clashed with police in various other parts of the capital.

     

    One group of marchers, many wearing protective masks, attacked about 20 police blocking side-street access around the parliament, lobbing firecrackers, rocks and metal crowd barriers -- again met with a flurry of tear gas.

     

    "The government will fall, I hope," said economics student Alexandros, proclaiming "a big day" for Greece that he believes could trigger elections. "If it doesn't fall, we will stay in the streets for another month if need be."

     

    The strike brought about blanket power cuts and ground transport in the capital to a halt on Tuesday.

     

    Demonstrators have said they will go toe-to-toe with nearly 5,000 police surrounding all access roads to the parliament in a bid to shut down the legislature. They were beaten back and prevented from doing so during a previous attempt on June 15, during the last general strike.

     

    Prime Minister George Papandreou's Socialists have a five-seat majority in the assembly, and have come under intense international pressure to adopt the austerity measures which will be voted over two days, Wednesday and Thursday.

     

    The main conservative opposition, as well as parties from extreme-right to extreme-left, have said they will vote against the package.

     

    "It's the moment of truth for the country," said Socialist MP Mihalis Katrinis during Tuesday night's parliamentary debate. "There is no other solution."

     

    Finance Minister Evangelos Venizelos said that while the measures were "unjust" and "harsh," a vote in favour would be "positive" for the country, and represent "courageous action on the part of deputies."

     

    One idea under discussion within the government, according to an official who refused to be named, is to delay until next year contested plans to sell off a government stake in the national electricity company in a bid to ensure support from waverers.

     

    However, it remains to be seen how that would go down with European Union and IMF negotiators who have made the privatisation of a dozen utilities and other public assets also including water a priority, with the goal of raising 50 billion euros by 2015.

     

    New IMF chief Christine Lagarde has urged opposition lawmakers to support the government and vote for the package, saying Tuesday the austerity measures were needed to save Greece's "destiny".

     

    EU president Herman Van Rompuy said approval of the package was "crucial for the Greek people, but also for the eurozone and the stability of the world economy."

     

    The new measures were drawn up to meet EU and International Monetary Fund conditions for further bailout support, after a 110-billion-euro rescue last year.

     

    If passed, these creditors could authorise as early as Sunday 12 billion in blocked funds needed to stave off bankruptcy for the Athens government when massive repayments fall due in mid-July.

     

    They would then thrash out how much banks and other private creditors will contribute by way of a 'rollover' of existing debts.

     

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