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.

Israeli Air Drills in Greece – Asr-e Iran

Asr-e Iran, an Iranian news site, reported today that the Israeli air force is conducting air exercises in Greece to mimic an attack on Iran. 10 Israeli F-16s have repeatedly flown the 350-km distance between Athens and Larissa during day and night and conducted air raid exercises. (Asr-e Iran, 1 November)

Iran Halts Oil Sales to Greek Refiners

Iran’s state-run Press TV reported today that Iran has terminated the sale of crude oil to two of its most loyal customers, Hellenic Petroleum and Motor Oil Hellas of Greece, over their inability to make payments for their crude purchases. The tightening EU sanctions make it difficult to process payments to Iran through the global banking system.

Meanwhile, an official at top Greek refiner Hellenic Petroleum told Reuters it had suspended Iranian purchases because sanctions imposed made it impossible to pay.

Iran Cuts Oil Exports to Six European Countries

Oil Counter Sanction

Responding to the sanctions imposed by the EU against its oil and banking sectors, Iran today announced that it has cut oil exports to the Netherlands, Spain, Italy, France, Greece and Portugal effective immediately. The EU had given its members, including the six, a grace period until July to stop their import of Iranian oil.

The ambassadors of the six countries were summoned to the Ministry of Foreign Affairs in Tehran late on Wednesday and were told of Iran’s decision [Fars News Agency, 15 February].

EU Fails to Impose Oil Embargo on Iran

Greece Objected to an Embargo

EU foreign ministers failed today to reach an agreement to impose an oil embargo against Iran. They could only agree to add 37 people and 143 companies and organizations to the sanctions list, including the Iranian shipping line, IRISL, and entities controlled by IRGC.

French Foreign Minister Alain Juppe said that Greece, which relies on Iranian oil, had objected to Iran oil embargo.

“Greece has put forward a number of reservations,” Juppe said. “We have to take that into account. We have to see with our partners that the cuts can be compensated by the increase of production in other countries. It (the embargo) is very possible,” he added [AP, 1 December].