Greek conservative leader plan

Reported by AAP
Monday, February 13, 2012

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Conservative leader Antonio Samaras has appealed to Greek deputies to back a fresh austerity plan aimed at staving off bankruptcy, as police battled protestors on the streets of the capital.

Samaras was addressing parliament on Sunday as deputies debated the coalition government's proposed cuts, which international lenders insist on before agreeing a 130 billion euros ($A161 billion)- rescue plan.

"The vote is decisive and crucial, it is one of the most difficult in history," he said.

Samaras' New Democracy party, along with the socialist Pasok party agreed the cuts over the weekend after the far-right LAOS party quit the ruling coalition on Friday, refusing to back the programme.

The first deal Greece had struck with the International Monetary Fund and the European Union in May 2010 had not been enough, Samaras told deputies.

That deal was for a 110 billion euros ($A136 billion) in exchange for budget cuts and sweeping reforms. While the deal saved Greece from defaulting on its massive debt, it also made the country's economic situation even worse.

"But the current debt is not viable," said Samaras, adding that what was now at stake was a default and the country's continued membership of the eurozone.

"If there is an uncontrolled bankruptcy we are going to live in terror," he said.

"To avoid the abyss I appeal to you to vote for the new loan and change the current policies, but change them you have to avoid the abyss and ensure the survival of the country," he added.

Lawmakers were widely expected to defy the 100,000-strong turnout in Athens and Thessaloniki and approve the measures requested by Greece's international creditors for the multi-billion rescue fund to be unlocked.

Police used tear gas on petrol-bomb throwing demonstrators in Athens on Sunday and at least 10 buildings were ablaze in the capital.

22/05/2012 00:18Sydney, Australia. 22 May,2012
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