Rehn welcomes Greek debt decision

Monday, February 13, 2012 - 11:55 AM

EU Commissioner for Economic Affairs Olli Rehn has welcomed the Greek parliament's approval of a harsh new austerity package.

Commissioner Rehn said the European Commission remains "strongly committed to reinforce the assistance to the Greek administration on the ground".

He also condemned violence on the streets of Athens yesterday, which he branded "unacceptable".

He was speaking following the approval in Athens last night of a savage package of cutbacks which will however enable Greece’s European partners and the International Monetary Fund to release €170bn in new rescue loans, without which Greece would default on its mountain of debt next month.

Politicians voted 199-74 in favour of the cutbacks, despite strong dissent among the two main coalition members.

In response, the Socialists and conservatives expelled 22 and 21 MPs, respectively, reducing their majority in the 300-seat parliament from 236 to 193.

"In the last weeks, there have been tensions both in Greece and within its partners," Commissioner Rehn said.

"The correction of the serious imbalances affecting the Greek economy and the restoration of the conditions for growth and jobs are a long-term endeavour.

"It will still take time and effort by the Greek society. The EU continues to stand by the Greek people.

"The Greek authorities and political forces should now take full ownership and make the case for the second programme, and then fully implement it, in order to ensure the return of the country to sustainable economic growth and jobs."

Last night's parliamentary vote was held against a backdrop of violence in at least seven Greek cities.

In Athens, 50 police officers were injured and at least 70 protesters were taken to hospital. Sixty-seven suspected rioters were arrested and a further 70 detained.

"These individuals do not represent the vast majority of Greek citizens who are genuinely concerned for the future of their country," Commissioner Rehn added.