Violence erupts in Greece as default looms

ATHENS—Greece’s future in the eurozone came under renewed threat yesterday as popular protests again turned violent and dissent grew among its lawmakers after European leaders demanded deeper spending cuts. The country’s beleaguered coalition government promised to push through the tough new austerity measures and rescue a crucial €130 billion (US$170 billion) bailout deal after six members of the Cabinet resigned. Prime Minister Lucas 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.

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. Debt-stricken Greece does not have the money to cover a €14.5 billion bond repayment on March 20, and must reach a vital debt-relief deal with private bond investors before then. Papademos said the bailout and the deal with private creditors would return Greece to growth next year, and deliver a 4.5 per cent primary surplus in 2012—better than an earlier official prediction of 1.1 per cent of gross domestic product.

AP