Austerity vote pulls Greece from brink - for now
ATHENS, Greece - Greece has bought itself some time to deal with its crippling debt crisis after lawmakers cleared the final hurdle for crucial bailout funds to be released, that will prevent the country from defaulting next month.
The European Union and International Monetary Fund had demanded Parliament pass two bills — an austerity law and a second bill detailing how it will be implemented — before they approve a euro12 billion ($17.3 billion) installment from the country's euro110 billion ($159 billion) package of rescue loans.
Parliament passed the second law by majority vote Thursday.
The austerity measures have been met with resistance, with two days of rioting in the lead-up to Wednesday's vote. More than 300 people were injured.
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Without the financial assistance, Greece was facing bankruptcy as soon as the middle of July. A Greek default on its debts could trigger a major banking crisis and potential turmoil in global markets, similar to what happened when the Lehman Brothers investment house collapsed in 2008 in the United States.
As a result, markets around the world breathed a sigh of relief after Wednesday's vote — while municipal authorities in the Greek capital grappled with the damage caused by two days of violent protests.
The next euro12 billion EU-IMF loan installment will tide Greece over till mid-September, according to government officials, but it looks like it will need a lot more money in the years to come. Creditors are considering giving Greece a second, major support package to cover upcoming financing gaps.
Last year's euro110 billion ($159 billion) package was predicated on Greece being able to tap bond market investors for cash next year but with the country's interest rates at exorbitant levels, that looks highly unlikely.
On Wednesday, riots erupted for a second day outside the parliament in Athens, with police clashing and firing tear gas at protesters after a failed attempt to blockade the building.
Trade associations said about 50 stores had been damaged, mostly cafes and fast food restaurants near parliament, while tourists and other guests were evacuated from a central Athens hotel.
The street cleaners were out overnight in Athens and by Thursday morning, Syntagma Square had been swept clean. But the enduring anger over the austerity program will be hard to sweep away, reports CBS News correspondent Mark Phillips.
"It's better to be bankrupt and not having sold off the crown jewels ... then to have sold them and be bankrupt anyway with a higher debt on top of it," one protester told CBS News.
Government officials said they were unhappy with policing of the riots which lasted nearly 10 hours Wednesday, but police spokesman Thanassis Kokkalakis said they had succeeded in protecting parliament and preventing serious injuries and property damage.
No major protests were planned Thursday, and power company workers called off a strike which had caused days of rolling blackouts. Ferry services to the Greek islands from greater Athens ports were canceled for a third day, however, due to a port workers' strike.
A civil servants' union said it would stage a central Athens rally later Thursday.
The Greek Hoteliers Association issued a call for restraint to police, unions and demonstrators, warning the violence could hit high-season bookings.
"Once again, a world audience witnessed television footage (of riots) that would discourage even the most determined prospective visitor from traveling to our country," as association statement said.
But Andreas Andreadis, head of Association of Greek Tourism Enterprises, told The Associated Press he did not believe the riots would have a lasting effect on a generally good year for the Greek holiday industry.
"There was a small dip in bookings, mainly to Athens, for the last four-or-five days, but it is likely to return to normal," he said. "We remain on course for a 10 percent increase in tourism bookings this year compared with 2010."