Open

Coming up

Don't miss

Replay


LATEST SHOWS

REPORTERS

Scotland: On the path to independence?

Read more

IN THE PAPERS

Le Figaro: Is it really possible to 'destroy' the Islamic State organisation?

Read more

BUSINESS DAILY

Hundreds of flights cancelled as Air France pilots strike

Read more

WEB NEWS

Investigative reporting in the digital age

Read more

WEB NEWS

Online reactions to the death of David Haines

Read more

THE INTERVIEW

Patrick Chauvel, French war photographer

Read more

AFRICA NEWS

Oscar Pistorius trial: Sprinter convicted of culpable homicide

Read more

THE WORLD THIS WEEK

The World this Week - September 12th, 2014

Read more

THE WORLD THIS WEEK

The World this Week - September 12th, 2014 (part 2)

Read more

Europe

Greek ministers resign as bailout hangs in the balance

Text by News Wires

Latest update : 2012-02-10

Five Greek politicians, including the deputy foreign minister, resigned Friday over a crunch bailout agreement that the country needs to avoid bankruptcy. Greece’s future in the euro is now increasingly precarious and violence erupted in Athens.

AP - Greece’s future in the eurozone grew increasingly precarious Friday as violence erupted on the streets of Athens and dissent grew among its lawmakers after European leaders demanded deeper spending cuts.

The country’s beleaguered coalition government promised Friday to push through the tough new austerity measures and rescue a crucial EUR 130 billion ($170 billion) bailout deal, as six members of the Cabinet resigned.

IN DEPTH

Prime Minister Lucas Papademos promised to “do everything necessary” to ensure parliament passes the new austerity measures that would slap Greeks with a minimum wage cut during a fifth year of recession.

“It is absolutely necessary to complete the effort that began almost two years to consolidate public finances, restore competitiveness and economic recovery,” Papademos told an emergency Cabinet meeting.

Debt-stricken Greece needs the bailout money before a EUR 14.5 billion bond deadline on March 20 and strike a vital debt-relief deal with bond investors.

He said the bailout and a related debt-reduction deal with private creditors would return Greece to growth next year, and deliver 4.5 percent primary surplus in 2012 - better than an earlier official prediction of 1.1 percent of gross domestic product.

“A disorderly default would cast our country into a catastrophic adventure. It would create conditions of uncontrollable economic chaos and social explosion,” he warned.

“Greeks’ standard of living in the event of a disorderly default would collapse, and the country would be swept into a deep vortex of recession, instability, unemployment and penury. These developments would lead, sooner or later, to exit from the euro.”

Earlier Friday, a small right-wing party in Papademos’ coalition said it would not back the new measures and four of its officials in the cabinet resigned, including the country’s transport minister.

Two Socialists cabinet members have also quit.

Greece has promised to approve the new austerity measures by late Sunday,
despite deep public resentment.

Violent clashes broke out in front of parliament earlier in the day, amid mass protests organized by unions, which launched a 48-hour general strike.

 

 

Date created : 2012-02-10

  • GREECE

    Greece's far-right party rejects bailout agreement

    Read more

  • GREECE

    Eurozone ministers set new conditions for Greece bailout

    Read more

  • GREECE

    As Europe huffs and puffs, Greece fights to stay afloat

    Read more

COMMENT(S)