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    Greece's coalition party leaders back bailout deal

    ATHENS, Greece (AP) — The leaders of the two parties backing Greece's coalition government made dramatic appeals to their deputies Saturday to back legislation that calls for harsh new austerity measures — essential if Greece is to get a new bailout deal worth euro130 billion ($171.6 billion) and stave off bankruptcy.

    Prime Minister Lucas Papademos is expected to give a televised address later Saturday to defend the deal.

    Debate on emergency legislation approving the new bailout and a debt-swapping deal with private creditors began in committee Saturday afternoon. A plenary session will debate and vote on it Sunday. Further legislation detailing the measures demanded by, and agreed with, Greece's public creditors, the European Union and the International Monetary Fund, will be up for vote a few days later. The exact time has not yet been set.

    Both leaders — socialist George Papandreou and conservative Antonis Samaras — as well as Finance Minister Evangelos Venizelos, a socialist, used stark images of a country under bankruptcy to warn their respective parliamentary groups of the importance of their vote.

    "If we do not dare today, we will live a catastrophe," Papandreou said.

    "What do you want, a country where food will be handed out with food stamps and where we will have no fuel?" Samaras angrily told a dissenting deputy.

    "The battle is now. The war is now. If we falter, nothing will be left standing...The real dilemma is between painful measures and crushingly painful ones," Venizelos told socialist lawmakers.

    Deputies are wary of voting for the measures, which include wage and pension cuts and the prospect of more to come, along with the firing of several thousand civil servants and the shutdown of several state agencies, including welfare agencies. The demands of the EU and the IMF have caused one of the original coalition parties — the populist right-wing Popular Orthodox Party — to quit the government and withdraw its four members from the cabinet. Two more cabinet members — both socialist deputy ministers — have also quit, citing their disagreements with parts of the austerity package.

    Both Papandreou and Samaras made it clear that dissenters would have no place in the party. Samaras was more emphatic, threatening to expel those who did not vote in favor and exclude them from the lists of party candidates in the next election. "I want to make it absolutely clear ... rebels or 'bravehearts' have no place in (the party's) candidate lists," he said.

    "I call on you to fall in line and vote for this difficult and painful deal that will help (the country) stand on its feet. Whoever has a conscience problem, can resign," Papandreou told his lawmakers.

    Despite their leaders' calls, at least four deputies from each party openly declared they would vote against, while two socialist deputies — both former ministers — hinted they might do so. None offered to resign.

    Together, the socialists and the conservatives have 236 deputies in the 300-member parliament.

    Samaras also called for an immediate election 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. Elections are normally due in October 2013. The bond swap deal with Greece's private creditors is expected to help Greece get rid of some euro100 billion of its debt. The bond swap must be completed before March 20, the redemption date for euro14.5 billion worth of bonds. Elections could then be held about three weeks later than that, at the earliest.

    While the two parties met, union leaders staged a demonstration outside parliament that attracted about 4,000 protesters, according to the police — while 5-6,000 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, one on Sunday evening.

    Another 4,000 turned out for a peaceful demonstration in Thessaloniki, Greece's second city.

    ___

    Costas Kantouris in Thessaloniki contributed to this report.

     

    31 comments

    • Janey  •  Henderson, Kentucky  •  3 mths ago
      Different day, same story. The leaders are still looking out for themselves......Janey
      • Joseph_Cool 3 mths ago
        Yup, no money=no power. The Politico's will do anything to retain power.
    • KIP  •  Lafayette, Louisiana  •  3 mths ago
      Greece saying it will impose austerity is like Obama saying in 2008 that he will cut the deficit in half in five years. The Germans are as gullible as us Americans.
      • Nels 3 mths ago
        ...... Obama's Pathetic Record:
        1. Federal debt has increased by 44% from $10.6 trillion to $15.23 trillion.
        2. Americans living in poverty have increased by 16% from 39.8 million to 46.2 million.
        3. Total unemployment (U6) has increased by 21% from 19 million to 23 million.
        4. Price of gasoline has increased by 80% from $1.86/gal to $3.35/gal
        5. Grocery prices have increased by 17%. [CPI Food price index of 119.6 to 164.3]
        6. Americans on food stamps have increased 42% from 31.8 million to 45.2 million
        7. Healthcare premiums per family have increased by 19% from $12,680 to $15,073.
        8. US Bank failures per year have increased by 268% from 25/yr in 2008 to 96/yr in 2011.
        9. Home foreclosures per year have increased by 34% from 850,000 to 1,140,000
        10. Total bankruptcy filings per year have increased by 31% from 1,117,641 to 1,467.221.
        11. US credit rating was downgraded by S&P for first time
        12. Median Household income has declined by 4% from $50,939 to $48,950.
        13. Median value of existing homes has declined by 17% from $197,233 to $162,500.
        14. US dollar compared to foreign currencies has declined by 7.7%. [US dollar index on Jan 20, 2009 versus Dec 30, 2011]
        15. US dollar compared to gold has declined 89%. [$855/ounce to $1617/ounce]
      • stuuts 3 mths ago
        avg price of gas was $2.80 not $1.86. I bet if i checked the other numbers I would find most of them are made up also.
    • M.O. Schrenk  •  Clovis, California  •  3 mths ago
      Trying to nail the Greeks down to do anything about their situation is like trying to catch... a greeced pig! (Get it?)
    • maryjanesuncle  •  Springfield, Missouri  •  3 mths ago
      Greeks and their dern
      tragedies.
    • Sunset  •  Batesville, Indiana  •  3 mths ago
      I'm sure they would!
    • Yep Yep  •  3 mths ago
      America land of the Freeebee
    • Mad Dog 1  •  3 mths ago
      Greece is going to take up th a**. They have 2 choices:
      1. with vasoline............The EU way
      2. Without vasoline........Go BK
    • A WHOLE IS SOROS  •  Beaverton, Oregon  •  3 mths ago
      Certainly we'll take more Fiat $$$ with no plan to pay it back.
    • Louis  •  3 mths ago
      Greeks are under the impression that if they go back to the drachma things will be as they were before the euro, they don't realize that they import everything and noone will ever give them any credit.They will run out of oil,medicine, and everything from A-Z.Bank runs will ensue but the banks will have no cash,civil servants and public services will disappear as the govt will have no cash to pay for any.If they think the riots are bad now wait till they don't get paid next payday.
      • Ilias Tselios 3 mths ago
        Wow, doomsday scenario! In your mind!
      • Louis 3 mths ago
        Ilia....min mou les emena gia doomsday scenarios,just go talk the argentinians and see how much of a big party they had when they went broke.Who do you think will give you credit for any imports when you don't have a dime.Greece produces nothing except from olive oil and some lemons.As far as i see from your quote you probably have never lived anywhere else.I left greece years ago and don't regret it for a minute.I am tired of the magia,araliki kai exei o theos attitude that there is
    • Alex Moore  •  Stamford, Connecticut  •  3 mths ago
      Great...now get the 99.99% of the country to even understand they ae all hanging off a cliff....Greece should never have been admitted to Euro...but they needed the ports for trading coalition with the rest of Europe...now the are paying for it....cut your losses...kick Greece out of the EURO....let them face reality - example: 40% of real property/land of Greece is still in contention since WWII.......unfortunate but true....they are broken and they are going to push the Euro over the edge in 2012..........it"s great to be across the pond.....
      • Ilias Tselios 3 mths ago
        That it will be a solution. So you must kick California out of US.
      • Alex Moore 3 mths ago
        Cali's are americans....and do not live in denial......we don't have the luxury of state provided retirement at 50 years old or 30 hour work weeks...enjoy it cause it's all crumpling down.....
    • eeCoonass  •  New Orleans, Louisiana  •  3 mths ago
      It’s the Economy, Stupid!!! Greece – It can happen here!!!...................................................
      It’s the Economy, Stupid!!! Here’s the 4 Step Plan to bring us Together:……………..............
      1. Get the Market out of It’s Funk by Making the Bush Tax Cuts Permanent ………..............
      2. Get Spending Under Control by Freezing Spending to FY11 Numbers and allow Revenues to Catch Up…………
      3. Bring the Country Together in a Common Purpose of Pulling the Nation Out of the $15T Ditch by Adding a 5% National Sales Tax and allow Everyone to pull the Wagon………
      4. Save SS and Medicare for the Next Generation by moving back Retirement Age 2 years because People are Living longer and it’s throwing the System out of Whack!!! Even Chrissy Mathews agrees with this!!!………
      • SS 3 mths ago
        be quicker easier and MUCH better to impeach obamo and jail all the socialist in the senate for treason
    • Fred Derf  •  Oregon, Wisconsin  •  3 mths ago
      RE War:
      Isn't it about time we started worrying about our country rather than fighting foreign wars then rebuilding foreign nations. If we had spent the amount of money squandered in the middle east since 1980 we could have built enough energy infrastructure to rid ourselves of a dependance on foreign oil. We could have built better roads, bridges, buildings etc. This would have meant more jobs for Americans in building our economy and more cash at home in our pockets rather than in the hands of sheiks, foreign powers and war mongers.

      RE Trade, commerce and jobs:
      It is nearly impossible to buy something made in America these days. I remember when Japan rose as an economic power and W-Mart boasted about selling goods made in America, What happened? Off brand tools of lesser quality for example used to come from Japan and now they come from China. The ironic thing is now the Name Brand tools often come from the far east too. It is time for all-Americans to take stock in America. If Americans only bought products labeled !00% made in America, manufactures will wake up and realize we only want products made in America. Then they would fill the demand and jobs could stay in America.
    • notA2nddime  •  3 mths ago
      NO WAY OUT... on the bail out which is more like a death sentence for the Greek nation.
    • Kirk  •  Hatteras, North Carolina  •  3 mths ago
      Greece = USA 2020
    • Gate Keeper  •  3 mths ago
      Great example of "socialism", right folks?!! Is anyone paying attention yet?!! Anyone?
      The answer is there is someone, and he's been warning us for more than 4 years, but most don't want to hear it...Tune into GBTV, his forecast have been POINT ON and PROVEN!
    • Nels  •  3 mths ago
      1/3 of the more than 200 year National Debt has been caused by Barack Hussein Obama!!
    • demented youth  •  3 mths ago
      socialism doesn't work you hear that NWO
    • Gate Keeper  •  3 mths ago
      Hold on Greece...If Obama gets reelected, we'll catch up to you soon! After all, the more the merrier, right?!!
    • Larry Dickson  •  San Diego, California  •  3 mths ago
      Say it again and again: ICELAND AND ARGENTINA. They both defaulted and are doing fine. All this wailing by the politicians is therefore nonsense. It's the POLITICIANS who suffer in a default (they can't borrow money to give to their friends). Everyone but the politicians suffers under austerity.
    • JayF  •  3 mths ago
      Easiest way to fix Greece...have Greek authorities identify all protesters...put them on a list of "Do Not Hire" and a list of "No Government Support"....that alone would reduce spending.
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