GERMANY’S FINANCE MINISTER has told a national newspaper that Greece will be saved but added that Athens is required to not only decide on austerity but also put it into practise.
Wolfgang Schaeuble’s comments to Welt am Sonntag come ahead of this week’s discussions between eurozone finance chiefs to ratify a second bailout package for Athens.
He said that Greece will still be required to “do its homework” and that “promises are not enough any more”, according to Bloomberg. The finance minister also told the Sunday paper that Greece cannot become a bottomless pit.
Finance ministers will gather in Brussels on Wednesday for the extraordinary meeting as they failed to allow the €130 billion financial lifeline earlier this month.
Last night, however, Greek ministers passed the austerity measures demanded by the European Union and other creditors which should see the money released.
Athens is required to pay a €14.5 billion bond on 20 March but the bailout needs to be approved by 15 February to give certain governments sufficient time to release funds. Without the bailout, Greece will not have the funds to pay the loans falling due next month.
The news of last night’s vote was met by fierce riots in Athens as the public showed its anger in the face of further public spending cuts and job losses.
More than 120 people were injured during the violent protests as police clashed with rioters and buildings were set ablaze. About 45 businesses were damaged as a cinema, banks, mobile phone shops and cafés were attacked.
There was also violence reported in six other cities. The town hall and tax office in Volos were set on fire and damaged.
Sunday’s clashes erupted after more than 100,000 protesters marched to the parliament to rally against the drastic cuts, which will ax one in five civil service jobs and slash the minimum wage by more than a fifth.
Vandalism and destruction have no place in a democracy and will not be tolerated. I call on the public to show calm. At these crucial times, we do not have the luxury of this type of protest. I think everyone is aware of how serious the situation is.”
Following the vote, which saw the austerity measures pass 199 to 74, a number of members of parliament were expelled. The Socialists lost 22 lawmakers, while conservatives expelled 21, reducing the coalitions majority from 236 to 193.
Markets have responded well to the overnight vote with the euro gaining 0.4 per cent.
-Additional reporting by AP
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