Greek Parliament passes medium-term fiscal program

Greek Parliament passes medium-term fiscal program

2011-06-29 22:20:38 GMT+7 (ICT)

ATHENS, GREECE (BNO NEWS) -- The Greek Parliament on Wednesday passed by majority the Medium-Term Fiscal Strategic Program, part of the conditions set by the European Union for a financing loan.

According to the state-run Athens News Agency (ANA), the key austerity program was approved after 155 Members of the Parliament voted in favor, 138 against and two abstentions.

This was the most anticipated voting in the 300-member Parliament since democracy was reinstated in the Mediterranean country in 1974. On Thursday, a vote will be held on the legislation necessary for implementing the Medium-Term Program.

The new set of austerity measures approved by the Parliament included tax hikes, wide-ranging reforms and accelerated privatizations. The approval of program was fundamental for securing a new EU bailout agreement.

The European Council President Herman Van Rompuy and the European Commission President Jose Manuel Barroso welcomed the approval of the revised economic program by the Greek Parliament and urged to pass the necessary laws as well.

"A second positive vote will pave the way for the disbursement of the next tranche of financial assistance," said Van Rompuy and Barroso in a joint statement. "It would also allow for work to proceed rapidly on a second package of financial assistance, enabling the country to move forward and restoring hope to the Greek people."

Greece is expecting a new 12 billion Euro ($17 billion) bailout from the EU and the International Monetary Fund (IMF) to consolidate its troubled finances and avoid bankruptcy as the first one failed to stabilize its financial system.

However the EU and the IMF urged the Greek government to enact a new austerity program and the reforms needed to implement and enforce it as key to reach a new bailout agreement. The voting came amidst protests and a 48-hour nationwide strike.

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