ATHENS, Greece — Greek lawmakers today approved harsh new austerity measures demanded by bailout creditors to save the debt-crippled nation from bankruptcy, after rioters in central Athens torched buildings, looted shops and clashed with riot police.
The historic vote paves the way for Greece’s European partners and the International Monetary Fund to release $170 billion in new rescue loans, without which Greece would default on its mountain of debt next month and likely leave the eurozone, which would further roil global markets.
Lawmakers voted 199-74 in favor of the cutbacks, despite strong dissent among the two main coalition members. A total of 37 lawmakers from the majority Socialists and conservative New Democracy party either voted against the party line, abstained or voted present.
Sunday’s clashes erupted after more than 100,000 protesters marched to the parliament to rally against the drastic cuts, which will ax 1 in 5 civil service jobs and slash the minimum wage by more than one-fifth.
At least 45 businesses were damaged by fire, including several historic buildings, movie theaters, banks and a cafeteria. Fifty police officers were injured and at least 55 protesters were hospitalized. Forty-five suspected rioters were arrested and a further 40 detained.
As the vote got under way early today, Prime Minister Lucas Papademos urged calm, pointing to the country’s dire financial straits.
“Vandalism and destruction have no place in a democracy and will not be tolerated,” Papademos told Parliament. “I call on the public to show calm. At these crucial times, we do not have the luxury of this type of protest. I think everyone is aware of how serious the situation is.”
Since May 2010, Greece has survived on a $145 billion bailout from its European partners and the IMF. When that proved insufficient, the new rescue package was approved. The deal, which has not yet been finalized, will be combined with a massive bond swap deal to write off half the country’s privately held debt.
But for both deals to materialize, Greece had to persuade its deeply skeptical creditors that it has the will to implement spending cuts and public sector reforms that will end years of fiscal profligacy and tame gaping budget deficits.
Papademos’ government had been expected to carry the austerity vote. Combined, they control 236 of Parliament’s 300 seats. Still, they faced strong dissent: Besides the 37 lawmakers who voted against the bill or abstained, a further six voted against sections of the proposed measures.
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