The Parliament of Greece Voted for the Austerity Package

The Greek Parliament on 29 June 2011 approved the 28 billion euro austerity package aimed at saving the nation from defaulting on its debts. If the austerity package had been rejected, Greece could have run out of money in recent future. Total Greek debt is 340 billion Euros. 

Greece is heavily in debt and the package is required to win the latest package of a 110 Billion euro loan from the EU (European Union) and IMF. The EU and the International Monetary Fund wanted the measures implemented before they release more funds to help Greece pay off its huge debts.

The proposed tax hikes and spending cuts was strongly opposed by sections of the opposition. The protesters are angry that the government’s austerity programme will impose taxes on those who earn the minimum wage, following months of other cuts that have caused increase in unemployment to more than 16%.

Besides Greece, Ireland and Portugal are other member countris of EU who face similar kind of financial crisis.