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Originally published February 11, 2012 at 2:25 PM | Page modified February 11, 2012 at 7:24 PM
Greek prime minister rallies support for deal
Greece's prime minister said the alternative to austerity is catastrophic bankruptcy — echoing comments made earlier by the leaders of parties backing Greece's coalition government — socialist George Papandreou and conservative Antonis Samaras.
The Associated Press
MILOS BICANSKI / GETTY IMAGES
Banners are mounted in front of the Parthenon as thousands of people massed in Athens on Saturday to protest the possibility of a fresh wave of painful wage and pension cuts.
ATHENS, Greece — In a televised address, Greece's prime minister defended austerity measures Saturday that include painful wage and pension cuts but would ensure the country receives a 130 billion euro ($170 billion) bailout deal and staves off bankruptcy.
Lucas Papademos made the comments on the eve of a parliamentary debate and vote on emergency legislation approving the new bailout and a debt-swapping deal with private creditors. The debate began at committee level Saturday afternoon. Further legislation will be up for vote a few days later.
Papademos said the alternative to austerity is catastrophic bankruptcy — echoing comments made earlier by the leaders of parties backing Greece's coalition government — socialist George Papandreou and conservative Antonis Samaras.
"The deal will ensure our country's future inside the (eurozone). Bankruptcy would lead to uncontrollable economic chaos and social explosion," Papademos said.
He added that under bankruptcy Greeks would lose their savings, the state would be unable to pay for salaries and pensions, and there would be shortages in import items such as medicines, fuel and machinery.
Elections are due in October 2013, but Samaras called for an immediate vote once the bond-swap deal with Greece's private creditors is over, saying he would not agree to the extension of the mandate of the coalition government beyond that date.
The bond-swap deal with Greece's private creditors is expected to help Greece get rid of around 100 billion euros ($130 billion) of its debt. The bond swap must be completed before March 20, the redemption date for 14.5 billion euros ($19 billion) worth of bonds. Elections could be held about three weeks later than that, at the earliest.
Union leaders staged a demonstration Saturday outside parliament that attracted about 4,000 protesters, according to the police — while 5,000-6,000 policemen patrolled the streets of Athens. The protest ended with some scuffles that left two people injured when police tried to clear the street in front of parliament. Authorities are bracing for a much larger, and possibly violent, protest on Sunday evening.
Another 4,000 turned out for a peaceful demonstration in Thessaloniki, Greece's second city.
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