02:04
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Athens (Reuters)-– Greek Police clashed with protesters outside Parliament in the early hours of Thursday, ahead of a crucial vote expected to approve a law to prevent final austerity required.
The Government of Prime Minister George Papandreou, who won a first vote Wednesday, from 155 to 138 votes, expects to pass the second and final invoice tax hikes, spending objectives and privatizations has agreed as part of a plan to rescue EU/IMF.
Riot police fired tear gas. Hundreds of officers armed with batons chased black-clad youths threw stones, wrecked shops and set fire to the buildings.
Lawmakers passed a Bill earlier Wednesday to implement the austerity plan and must vote Thursday on legislation for its implementation. The measures were demanded by international lenders in exchange for keeping afloat the Greece.
"I expect the parliamentarians who claimed the mid-plane will vote for the law of implementation," Government spokesman Ilias Mosialos said in a television interview.
Both Bills establishing the austerity of 28 billion euros (40 billion dollars) should be passed to the European Union and the International Monetary Fund to release a loan tranche of EUR 12 billion to a rescue of 110 billion that the Government needs to stay afloat.
Are also needed for talks on a rescue plan according to planned of about the same size comprising nearly 30 billion in private sector participation. Locked out of bond markets, Greece needs extra money to avert default and keep the debt crisis from spilling over to the rest of the eurozone.
Papandreou, who has reshuffled his Cabinet earlier this month to secure support for the Bills, said he was determined to push through reforms.
"Today, I'm more determined than ever," Papandreou said. "Now is the time to deal with everything that is wrong with all that hurts us, that holds us back."
Thursday's vote allows individual budgetary measures and creates an agency of privatization. The opposition conservative new democracy party, who voted against the Bill, said it would support some of the measures in the second.
"We reject in principle. However, we shall support the mechanism of privatization, as well as articles on spending, "said new democracy Deputy Yannis Vroutsis.
Parliament resumed debate on the Bill the second at 9:30 (0630 GMT) and the vote is not expected before 14: 00 (1100 GMT). Before the debate, it had not yet decided if more than one vote would be needed to pass it.
Implementation of the measures it will be difficult for the Government, which has fallen behind the opposition in opinion polls and heated criticism from its members during the debate in Parliament.
Trade unions, which has paralyzed the country for 48 hours earlier this week, have vowed to oppose privatizations and other austerity measures. Anger among the Greek population was stressed by the violence that broke out on Syntagma Square outside Parliament Wednesday as the first votes of the Bill were to be counted.
Doctors who work with the protesters said they had treated at least 25 people for minor injuries and hundreds with respiratory problems to the adjacent Syntagma Metro station. At least 40 police officers were hurt, police said.
Police and hooded youths fought battles in the night, choking the city center with tear gas and smoke from gasoline bombs. Protesters set fire to the post office in the building where is located the Finance Ministry and tried to set fire to a bank. Across the square, was evacuated the King George Hotel.
Analysts said that the real challenge for Greece will come after the Bill is voted and insured money internationally.
"The law of implementation will also pass without problems," said Costas Panagopoulos, head of pollsters ALCO. "The real question is whether Papandreou will use this vote to go forward with these crucial reforms."
(Additional reporting by Harry Papachristou; Editing by Peter Graff)
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