Austerity Legislation Passed in Greek Parliament

By a vote of 224-64, the Greek parliament today passed a sweeping austerity package demanded by Greece’s European creditors for a new $94 billion bailout package, including significant pension adjustments, increase to value added tax, an overhaul of the country's collective bargaining system, measure to liberalize its economy, and tight limits to public spending. Greece will now remain in the Eurozone and avoids bankruptcy.

Earlier, thousands took to the streets of Athens in a series of peaceful marches to protest against the bailout deal that saves Greece from bankruptcy but will impose more austerity measures on a country already deep in crisis.  Radical protesters engaged the police in clashes, and police used tear gas to restore calm in central Syntagma Square, the scene of main protests.

Photo credit: Greek protesters clash with police at anti-austerity march, 15 July 2015 (Jean-Paul Pelissier/Reuters)

Greeks Vote ‘No’ in Referendum on EU Bailout

61% Voted 'No' to Austerity Measures

With nearly 95% of the votes counted, the Greeks today voted 61% against and 39% in favor of accepting the terms of the European Union bailout. The decisive ’No’ vote could redefine the country’s place in Europe and force Greece out of the Eurozone.

Prime Minister Alexis Tsipras called the referendum last week, the first since 1974 when the Greeks chose the republic over monarchy. This time people rejected severe austerity measures imposed by the creditors. Greece owes $350 billion to foreign investors and has run out of cash to meet its loan payments. Now without a bailout from the EU, the country could face default, banking collapse, and exit from the European Union. The anti-austerity voters hope Greece could come out of the crisis on its own, probably reintroducing Drachma as its national currency.