Austerity bill sent to parliament

Protesters shout anti-austerity slogans outside the Greek Parliament during a demonstration in central Athens (AP)
12 April 2012

Draft legislation in Greece for new austerity measures needed for a 130 billion euro bailout deal has been submitted to parliament.

The bill came after an emergency Cabinet meeting, held after six ministers and deputy ministers resigned over the harsh new cuts, which include firing thousands of civil servants and slashing the minimum wage.

Greece's prime minister Lucas Papademos told ministers the measures were vital to avoid a default that would cost Greece its place in the eurozone and provoke "economic chaos and social explosion".

Politicians will vote on the new measures late on Sunday.

Mr Papademos promised to "do everything necessary" to ensure parliament passes the new austerity measures that would slap Greeks with a minimum wage cut during a fifth year of recession.

He also promised to replace any other Cabinet members who did not fully back his efforts. "It is absolutely necessary to complete the effort that began almost two years to consolidate public finances, restore competitiveness and economic recovery," Mr Papademos told an emergency Cabinet meeting.

Draft legislation for the new austerity measures was submitted to parliament after the five-hour meeting ended.

In central Athens, clashes erupted outside Parliament between dozens of hooded youths and police in riot gear. Police said eight officers and two members of the public were injured, while six suspected rioters were arrested.

The violence broke as more than 15,000 people took to the streets of the capital after unions launched a two-day general strike that disrupted transport and other public services and left state hospitals running on emergency staff.

Scores of youths, some in gas masks, used sledge hammers to smash up marble paving stones in Athens' main Syntagma Square before hurling the rubble at riot police.

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