Greece approves austerity budget

Greek MPs approved the country’s 2013 austerity budget in a vital step to persuade international creditors to unblock a vital rescue loan instalment without which the country will go bankrupt.

The budget passed by a 167-128 vote in the 300-member parliament last night. It came days after a separate bill of deep spending cuts and tax increases for the next two years squeaked through with a narrow majority following severe disagreements among the three parties in the governing coalition.