Greece Braces for Key Vote on Fresh Austerity Measures

Greek Prime Minister Antonis Samaras has pleaded with politicians to vote through a fresh round of austerity measures crucial to securing the country’s next round of financial aid according to BBC News.

Parliament will vote later on 13.5bn Euros ($17.3bn; £10.5bn) of spending cuts, which include tax increases and cuts to pensions.

“We have to save the country from catastrophe,” Mr. Samaras said.

Without the aid, Mr. Samaras says Greece will run out of money by 15 November.

The fresh package of spending cuts – Greece’s fourth in three years – includes a two-year increase in the retirement age from the current average of 65; salary and pension cuts and another round of tax increases.

 The vote on these cuts will be followed by a second vote this Sunday on Greece’s revised budget for 2013.

A positive vote on both the austerity measures and the budget is required for Greece to secure 31.5bn Euros in fresh loans from the European Union (EU) and the International Monetary Fund (IMF).

 Mr. Samaras has said without this money, which will be used largely to recapitalise the country’s banks, the country will be bankrupt by the middle of the month.

The prospect of further cuts has enraged Greece’s two biggest labour unions, representing half the four million-strong workforce, which started what they described as the “mother of all strikes” on Tuesday.

The 48-hour strike, the third major walkout in just two months, has bought public transport across Greece to a halt.

 Despite the opposition, analysts are optimistic the fresh cuts will be approved.

 “There is some uncertainty, but the likelihood is that the measures will be passed by a narrow majority,” said IHS Global Insight economist Diego Iscaro.