Greek MPs Begin Austerity Debate

The Associated Press  reports:

Greek lawmakers begin debating new austerity plans Monday that must pass this week if the debt-ridden country is to receive the critical next installment of loans from its international bailout plan and avoid default.

The deeply unpopular spending cuts and tax hikes in a midterm austerity bill and an additional implementation law are expected to be voted on in parliament on Wednesday and Thursday. They must be passed for the European Union and International Monetary Fund to release the next €12 billion batch of loans from the €110 billion bailout.

Without those funds, Greece runs out of money in mid-July and faces becoming the first eurozone country to default on its debts — a potentially disastrous event that could drag down European banks and affect other financially troubled European countries.

“The €12 billion of this fifth installment is absolutely essential to service the cash needs of the public sector, which is in reality the servicing of citizens’ immediate and vital needs,” Finance Minister Evangelos Venizelos said over the weekend