The Greek Cabinet approved a draft bill spelling out reforms required by the EU and the IMF on Friday, taking Athens closer to getting a new 130 billion euro (US$171.6 billion) bailout after the prime minister warned the alternative was “catastrophe.”
All eyes will now be on parliament, which is scheduled to vote on the bill today. Analysts expect the deeply unpopular package to be adopted, but Greek politics remain highly unstable.
Even after this is done, the EU also wants a further 325 million euros of spending cuts and clear commitments by main party leaders that the reforms will be implemented before it agrees to release the aid.
Photo: AFP
Greek Prime Minister Lucas Papademos told his turbulent coalition government earlier on Friday to accept the harsh international bailout deal or condemn the nation to disaster.
“We cannot allow Greece to go bankrupt,” he told a Cabinet meeting. “Our priority is to do whatever it takes to approve the new economic program and proceed with the new loan agreement.”
Papademos, the sole technocrat in a coalition of feuding politicians, tried to assert his authority after six Cabinet members resigned over EU and IMF demands for yet more pay, pension and job cuts in return for the financial rescue.
The austerity plan includes lowering the minimum wage by 22 percent, axing 150,000 public sector jobs and reducing pensions.
“It goes without saying that whoever disagrees and does not vote for the new program cannot remain in the government,” he said in televised remarks.
Greece faces bankruptcy unless it gets the funds from the IMF and EU by March 20, when it has to repay 14.5 billion euros in maturing bonds.
“It was approved,” a minister who took part in the Cabinet meeting said about the draft bill.
A former central banker, Papademos tried to raise Greeks’ spirits as the nation enters its fifth year of recession, saying economic growth would return in 2013 despite accusations that the austerity is merely driving Greece into a downward spiral.
Any alternative to the rescue would be much worse, he said in opening remarks using the word “catastrophe” four times.
Earlier, far-right leader George Karatzaferis said he could not back the tough terms attached to the bailout and all four Cabinet members of his LAOS party submitted their resignations, along with two from the socialist PASOK party.
Papademos was not expected to react immediately to the loss of his transport minister and five deputy ministers.
“There will be no reshuffle today [Friday],” a government official said.
Adding to the confusion, Greek media said that two of the LAOS Cabinet members had resigned only under orders from Karatzaferis and would support the deeply unpopular package when parliament votes, possibly today or tomorrow.
The socialist PASOK party, one of three in the “national unity” government, called on its lawmakers to vote for the bailout, and analysts said they still thought parliament would pass the deeply unpopular package.
Outside parliament, police fired tear gas at black-masked protesters who threw petrol bombs, stones and bottles at the start of a 48-hour general strike against the cuts ordered by the “troika” of international lenders. However, the street protests were relatively small compared with last year’s mass rallies.
A group of 35 lawmakers from PASOK, whose public support has collapsed, protested against pressure from eurozone ministers.
“Our lenders are once again presenting the dilemma: either you take the measures or you lead the country to a default,” they said in a protest letter.
The biggest police trade union said it would issue arrest warrants for Greece’s international lenders for subverting democracy, and refused to “fight against our brothers.”
Greek Finance Minister Evangelos Venizelos made clear Greece has little choice but to accept the harsh conditions attached to the bailout, and a plan to halve its huge debt to private bondholders, to avoid a chaotic default next month.
LAOS leader Karatzaferis begged to differ.
“Greeks cannot be hostages and serfs,” he said. “We were robbed of our dignity, we were humiliated. I can’t take this. I won’t allow it, no matter how hungry I am.”
His party has 15 deputies in the 300 seat parliament, dominated by the socialist PASOK and conservative New Democracy parties, which both support the Papademos government.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
US CONSCULTANT: The US Department of Commerce’s Ursula Burns is a rarely seen US government consultant to be put forward to sit on the board, nominated as an independent director Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday nominated 10 candidates for its new board of directors, including Ursula Burns from the US Department of Commerce. It is rare that TSMC has nominated a US government consultant to sit on its board. Burns was nominated as one of seven independent directors. She is vice chair of the department’s Advisory Council on Supply Chain Competitiveness. Burns is to stand for election at TSMC’s annual shareholders’ meeting on June 4 along with the rest of the candidates. TSMC chairman Mark Liu (劉德音) was not on the list after in December last