Greek cabinet approves EU/IMF bailout bill- sources. Greece bailout: Lucas Papademos warns of default chaos. 10 February 2012Last updated at 22:12 The BBC's Mark Lowen says that social unrest is on the rise in Greece Greece faces "uncontrolled economic chaos" if it fails to agree spending cuts and defaults on its debts, Prime Minister Lucas Papademos has warned. He said ministers who disagreed with austerity measures could not stay in the coalition government, hours after four ministers resigned over the issue. Greek leaders are trying to enact cuts demanded by the EU and IMF for a 130bn-euro ($170bn; £110bn) bailout.
Unions have begun a 48-hour strike, and protesters clashed with police earlier. The prime minister said he would do "whatever it takes" to get the deal approved in a parliamentary vote set for Sunday. "We cannot allow Greece to go bankrupt," he told his cabinet, saying it was an "hour of historic responsibility". "A disorderly default would plunge our country in a disastrous adventure. Protest clashes Continue reading the main story Analysis Mark LowenBBC News, Athens. Cuts and tears: Greek police disperse angry mob in Athens clashes. Athens building burns during protests. Photos of Greece in turmoil: Protesters riot over EU austerity measures. Scenes of running battles between police and rioters and flames engulfing cinemas, shops and banks underscored a sense of deepening turmoil in the country after more than four years of recession and two of punishing austerity. The EU warned on Monday that the consequences of failure would be “devastating.”
It gave the fragile ruling coalition of Prime Minister Lucas Papademos until Wednesday, when euro zone finance ministers are expected to meet, to specify how 325 million euros of the 3.3 billion euros demanded in budget savings will be achieved. By the same deadline, Greek political leaders must give a written commitment to implement the terms of the deal, a Greek government spokesman said, reflecting fatigue among EU leaders who say they have heard enough broken promises.
The spokesman said Greece would hold an election in April, when deep public anger over the second round of austerity could drive voters further to the left and right and test Greece’s commitment to the programme. Watch Skai Live TV from Greece. Greek lawmakers pass unpopular austerity bill amid riots. Ale9ZrHCEAE3S3o.jpg (JPEG-afbeelding, 600x399 pixels) Crisis in Greece. The Greek Revolt. Spyros gkelis Greece (northaura)