ATHENS (AFP) – Greek Prime Minister George Papandreou hailed Thursday a parliamentary vote to introduce fresh austerity measures, despite riots in the streets, in a bid to avoid national bankruptcy.
"We have fought and won a difficult battle," Papandreou said as he opened cabinet talks on additional government reforms, after two days of voting to pass the 28.4-billion-euro ($40 billion) fiscal plan despite rioting around the Athens parliament.
"We still have very tough fights ahead at this crucial point to get out of this crisis, and change this country," he added, after seeing his parliamentary majority narrow ahead of fresh protests called for Syntagma Square later Thursday.
The European Union said Greece had now met the conditions set by the other euro currency nations to receive a blocked 12-billion installment from a joint bailout agreed with the IMF last year.
"In very difficult circumstances, it was another act of national responsibility," said EU president Herman Van Rompuy, in reference to running battles between hardcore protesters hurling firecrackers and police firing tear gas throughout a 48-hour general strike.
With government cuts accelerating across a nervous Europe, the final count gave Papandreou 155 votes, to 136 voices against.
However, he was on much less secure ground when it came to the legal detail concerning the package of reforms to be implemented through 2015.
Opposition conservatives backed privatisation, spending cuts and plans to lease out government-owned real estate -- but not a heavier tax burden for all, the cause of most of the anger on the streets.
A new rebel among the governing Socialists also voted no on individual clauses, although the whole package does go forward.
Nevertheless, the voting crossover matters because annual budget votes will still be required to drive through plans that protesters say will only result in more slippage until the Greek government is replaced.
Austerity has swept through Europe with the debt crisis refusing to clear, and the pressure is firmly on to prevent it impacting all countries with high debts -- including the United States -- on financial markets.
Eurozone finance ministers meet in Brussels on Sunday, when they can start the real job of drawing up a second bailout of a similar size to last year's 110-billion-euro rescue.
The volume to be contributed by private banks has caused ructions among EU partners, which Belgium's Finance Minister Didier Reynders said are unlikely to be resolved before further July 11 talks, even though Germany announced an agreement with banks to roll over some 3.2 billion euros in Greek bond investments.
Papandreou's finance minister Evangelos Venizelos raised another problem by saying "countries like Finland," a gold-plated eurozone economy influential in Brussels, also want Athens to put up collateral.
He said Helsinki "wants guarantees over and above those compatible" for Athens with EU rules of solidarity.
Greeks fear real estate or even islands being sought as lose-able collateral for government finance, as with home loans.
Greece's debt pile is variously put at 330-350 billion euros.
Outgoing European Central Bank figures laid bare divisions on how fast to cut: president Jean-Claude Trichet said "corrections" are neeeded to create jobs, whereas executive board member Lorenzo Bini Smaghi warned of "unprecedented masochism."
In downtown Athens Thursday evening, protesters known as Indignants were still camped out on Syntagma Square and rallies were called for mid-evening amid a nationwide 24-hour port strike.
The government earlier announced an inquiry into alleged police brutality during the rioting on Wednesday when blocks of downtown Athens resembled a battlefield for hours.
Blanketed by tear gas, bat-wielding hardcore elements fought sometimes alongside police hurling rocks and tear gas into enclosed spaces while medics carried bloodied casualties away.
"I don't understand why the police used so much tear gas," said an American tourist called Adam, after Amnesty International criticised "excessive" use of force.
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