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It’s bailout or chaos, PM Papademos tells Greece

Greek Prime Minister Lucas Papademos has told lawmakers to back a deeply unpopular international financial rescue in a vote Sunday or condemn the country to “uncontrolled economic chaos and social explosion.”

He made the statement in a televised address to the nation ahead of the vote on 3.3 billion euros ($4.35 billion) in wage, pension and job cuts – the price of a 130-billion-euro bailout from the European Union and International Monetary Fund.

Papademos said parliament had a historic responsibility to back the bill, or face catastrophic consequences if Greece misses a March 20 deadline to service its debt.

“A disorderly default would set the country on a disastrous adventure,” he said. “It would create conditions of uncontrolled economic chaos and social explosion.”

“The country would be drawn into a vortex of recession, instability, unemployment and protracted misery and this would sooner or later lead the country out of the euro.”

On a day of dire warnings and stormy debate, leaders of the ruling coalition told uneasy lawmakers Saturday to support the bill or be dropped from party lists for an election that could come by April.

Athens faces a March 20 deadline to meet debt repayments of 14.5 billion euros. If the rescue package is put in place, its private sector creditors will have to accept a 70 percent reduction in the value of their holdings.

The effort to ease Greece’s huge debt burden has brought thousands into the streets in protest, and there are signs of a small rebellion among lawmakers made nervous by the extent of the cuts and by how voters might punish them in the next election.

At least 20 deputies from the two main parties in the Papademos coalition threatened Saturday to vote ‘No’ – but the bulk of the coalition’s 236 MPs are still all but certain to approve the package.

Six members of his cabinet have resigned. More demonstrations are expected in front of the parliament on Sunday, after clashes between police and black-masked protesters Friday. 

Source: Reuters

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