Greek austerity squeaks through, but budget woes remain - Christian Science Monitor

Paris

Greek lawmakers under terrific urging from European Union officials today voted 155 to 148 to accept a package of austerity necessary to avert a government default and avoid a feared chain reaction of market turmoil around Europe and the world.

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Markets were optimistic before today's vote that Greek politicians would ignore a howling public that polls as high as 80 percent opposed to the $40 billion in government spending cuts and tax hikes that are the price of the international bailout that's staving off default. Other struggling "peripheral" euro-zone members, including Ireland, Portugal, Spain and Italy, are anxious not to suffer the negative market consequences of a Greek default.

The current Greek crisis, the second in slightly more than a year, is seen by some as a possible harbinger of European disunity, a turning point for greater isolation between the 17 eurozone members. Others see it as a necessary spur towards deeper integration.

Prime Minister George Papandreou framed today's vote in historic terms and together with new finance minister Evangelos Venizelos, a heavyweight in the ruling Pasok party, pushed through the package and also avoided defections that could have brought the government down.

IN PICTURES: Greece protests

News reports have a Pasok party headquarters in Crete being burned down, and in Athens the outcome of the vote has brought enough tear gas on the street to put 30 people in the hospital. The nation is in the second day of general strikes called by the trade unions. In the past weeks, atmosphere for the mostly peaceful protests in Syntagma Square, epicenter of political anger, has turned violent.

Tomorrow brings another vote in Parliament to enable the austerity legislation. That vote is being treated as pro forma, though some of the specific details – for instance, a huge cut in utility spending – remain sensitive.

Show Greece the money