Greek MPs back cuts ahead of EU talks

Greek MPs approved a series of health budget cuts on Thursday despite austerity protests outside the parliament in central Athens.

Eurozone finance ministers are also to meet on Thursday to deliberate about Greece’s effort to implement structural reforms required in return for a new 130 billion euro rescue loan from the European Union and the International Monetary Fund (IMF)

Speaking to reporters in Brussels, Eurozone chief Jean Claude Juncker said that Greece will most likely receive an initial payment by March 20th, if the country adopts the entire austerity measures requested.

The payment is vital for the Greece’s coalition government led by Prime Minister Lucas Papademos to pay off 14.5 billion euro bond redemption due this month and to go ahead with a related EUR 100 billion debt relief deal with private investors.

Successive rounds of austerity measures, demanded by international creditors, have forced Athens to massively cut its private and public sector wages, pensions, health and defense spending.

The move has triggered protests in Greece over the past few weeks. Around 1,000 people demonstrated outside parliament against the cuts on Wednesday night.

Greece has the highest debt burden in proportion to the size of its economy in the 17-nation eurozone. Despite austerity cuts and the bailout funds, the country has been in recession since 2009.

PG/JR

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