Greek Parliament should endorse the austerity second Bill (Reuters)

Athens (Reuters) - the Greece Parliament should pass a second Bill of austerity Thursday to allow the country to avoid bankruptcy by getting a slice of loan of 12 billion euros ($17 billion) of the EU and the IMF.

After two days of violent demonstrations just metres (yards) from where members adopted an initial act of austerity on Wednesday, they began to discuss detailed measures to implement EUR 28 billion in spending cuts, increases and privatization.

Dangerously close Greece to the default value that would trigger chaos on the financial markets, the European Union and the Monetary Fund International demanded that the two bills of austerity transmitted before it releases the next batch of bailout EUR 110 billion agreed last year.

In a hand for Socialist Prime Minister George Papandreou, the conservative opposition said it is willing to support measures in the second vote after having opposed the first invoice of austerity.

"We will do our utmost to support the Government," said the legislator of the new democracy Nikos Dendias, a former justice Minister. "We will vote for two chapters of the Bill today."

Parliament resumed debate at 9: 30 am (0630 GMT) and the decisive vote was not expected to begin before 2 pm (1100 GMT) with results emerging some time in the afternoon.

Voting will be by roll-call, with members called to vote on both the general principle of the Bill and of the individual articles. Papandreou has called a meeting of the Council of Ministers after the vote.

While the Socialist lawmakers are expected to back the legislation as a whole, some said that they opposed individual clauses, such as increases in a levy on heating oil and an increase of the minimum income tax threshold.

In an effort to convince the undecided, new Minister of finance Evangelos Venizelos offered some concessions on tax increase as threshold exempt from tax for families with children.

The first austerity Act, which describes the hard program cuts and selloffs, passed by 155 votes to 138. Approval of the second would allow euro-zone finance ministers delete the release of EUR 12 billion at a meeting Sunday.

Approval by the IMF is expected on July 5, averting the immediate threat of failure.

After that, attention will switch to a second rescue plan, roughly equivalent to the EUR 110 billion rescue plan agreed in May 2010, including the Greece needs to continue until 2014.

UPCOMING ISSUES

Global stocks rallied Thursday for the third consecutive day and the euro reached its highest level of the dollar in 20 days on a sense of relief that looked like Greece to avoid the first bankruptcy of debt in the euro area.

Calm returned Thursday two days of violent protests that have blocked the city centre and the Centre of Athens, who was paralyzed during a strike for 48 hours from the ground by the powerful labor unions sectors public and private.

Teams of street cleaners swept broken masonry and broken glass after a night of clashes in the vicinity of square Syntagma right in front of the Parliament.

But protest banners and tents remained in place Syntagma, where demonstrators camped during more than a month show their anger at austerity measures at the wheel of many Greeks to despair in the worst recession since the 1970s.

"The implementation Act will pass, without problems," said Costas Panagopoulos, head of pollsters ALCO. "The problem for Papandreou is not in the Parliament, it is what is happening outside of Parliament: not implemented Syntagma, which is a few hundred demonstrators, but with all of the Greece 11 million people."

With the ordinary Greeks to years of standard of living fall as the Government struggles to slash a mountain of debts amounting to more than 150% of the gross domestic product, transforming action laws will be a major challenge.

Unions and promised to oppose privatization promised de s' de s' à des à des à des syndicats et promis de s' opposer à des privatisations ont promis de s' à des de s' à des privatisations opposer promis opposer ont de s' de s' de s' à des privatisations à des privatisations opposer opposer opposer à des privatisations opposer promis opposer promised opposer ont de s' à des privatisations opposer promis opposer ont. The Socialists, which interrupted the process of privatization of the Greece when they came to power, must sell 5 billion euros in assets this year or risk missing the targets within the framework of its EU agenda and the IMF, which would have cut funding once more.

"If Papandreou and Venizelos miss this last chance, and not to pursue the necessary reforms and a true skin of grief in the State of waste, they and the country will be an explosive situation in the fall at no way out"centre-right daily Kathimerini wrote in an editorial."."

(Additional by Harry Papachristou and George Georgiopoulos, written by James Mackenzie; editing by Mark Heinrich)

Dangers lurk beyond vote of the Greek Parliament - Reuters

By Daniel Flynn and Leigh Thomas

ATHENS/PARIS. Thursday, June 30, 2011 6: 00 pm EDT

Athens/PARIS (AFP) - the Greek Parliament was created to approve austerity and bills of privatization Thursday to get emergency funds and to avoid imminent bankruptcy, but the long-term dangers lurk again.

The euro and global stocks rose after first voting Wednesday to adopt a five-year plan of austerity despite fierce public opposition pay more and cuts budget, investors expressed relief that the immediate implosion was averted.

Belgian Finance Minister Didier Reynders said, as a result, euro-zone finance ministers were likely to agree to release a next tranche of loans to the Greece at a meeting Sunday.

This loan of EUR 12 billion will prevent the default Greece mid-July or no later than August 20, when it must honour a redemption of leap and move the focus to a second package of assistance that could be on the same size that the EUR 110 billion bailout last year.

But the credit insurance markets are still pricing in 40 per cent for the holders of bonds on three-year debt likely chance of 80 per cent of the Greece by default on its mountain of debt of 340 billion euros--150% of economic output annual - in five years and a devaluation.

Socialist Government of Prime Minister George Papandreou may find it difficult to meet increases in taxes and sales of State assets against resistance mass public, while still violent fringe in Greek political life has erupted in the foreground.

The rioters armed with stones and clubs fought several hours of battles with police shooting running huge clouds of tear gas at the Centre of Athens into the early hours of the morning, leaving a field of debris from street cleaners remove.

"The law of implementation will be without problems," said Costas Panagopoulos, head of pollsters ALCO.

"The problem for Papandreou is not in the Parliament, it is what is happening outside of Parliament: not implemented Syntagma, which is a few hundred demonstrators, but with all of the Greece 11 million people."

FLIPPING TALKS

Of creditor European countries of the North, led by Chief Treasurer in Germany, insisting that the holders of private sector must share the cost of any other rescue, to intensive talks are underway on a "voluntary" Greek debt rollover due to expire.

German banks were due to discuss a plan of French capital that has attracted widespread with the officials of the Ministry of finance Thursday, but differences remain on incentives for private investors and ensures the possible official.

President of European Central Bank, Jean-Claude Trichet, who has repeatedly warned the EU against the outbreak of a credit event or the decommissioning of the devastating Greek debt, gave a cautious response to the French proposal in testimony to the European Parliament.

"At this stage, we have not yet (has obtained a position...), we are very alert but I can't give you a precise judgment on what is happening." There are several concepts when asked, "he says. "We advise against all concepts that are not purely voluntary."

Three banking sources told Reuters Wednesday that politicians and bankers were convinced that the implementation of the French plan would not trigger a payment of credit insurance or a defect that would inflict losses on the banks.

The banks had received positive signals from the rating agencies that they would not undermine the plan turning by default, the sources said.

But officials warned that many details of the plan, especially if there is no official warranty remaining to negotiate.

"We had a lot of discussions at the technical level to see what are the best solutions," Reynders said, adding that a decision could be taken by European Ministers of finance meeting on July 11 and 12.

"RISK OF IMPLEMENTATION".

As Athens recovered from a night of violence, market concerns displaced against the risk of a lack of immediate disorder for the first time in the eurozone at the prospect of medium term of a debt restructuring Greek.

"There are still risks of implementation in the coming months, but for the moment, the risk of default was taken off the coast of the table as long as through today's vote, said strategist of the Bank Lloyds Eric Wand."

It provides renewed pressure on the obligations of the weakest countries in the euro area on the edge of the area of the single currency after a short respite.

"There should be a brief interruption in the periphery-bashing we've had over the past few weeks, but other problems".

Those included the perspective of the early Spanish elections and bickering in the coalition of center-right of the Italy, while the country faces a downgrade rating of credit.

Office of the Italy is due to adopt Thursday a plan more ambitious deficit reduction than expected initially intended to save EUR 47 billion by 2014 to try to deal with a loss of solvency.

But the partners of the coalition of Prime Minister Silvio Berlusconi Northern League said that the Government is at risk on planes to the retirement age and reduce spending.

Greek Parliament should endorse the second Bill of austerity

Overview of the Greek as Parliament Prime Minister George Papandreou spoke (C) Athens, June 29, 2011.

Credit: Reuters/Giannis Liakos/ICONBy Dina Kyriakidou and Renee Maltezou

ATHENS | Thursday, June 30, 2011 6 pm EDT

Athens (Reuters) - the Greece Parliament should pass a second Bill of austerity Thursday to allow the country to avoid bankruptcy by getting a slice of loan of 12 billion euros ($17 billion) of the EU and the IMF.

After two days of violent demonstrations just metres (yards) from where members adopted an initial act of austerity on Wednesday, they began to discuss detailed measures to implement EUR 28 billion in spending cuts, increases and privatization.

Dangerously close Greece to the default value that would trigger chaos on the financial markets, the European Union and the Monetary Fund International demanded that the two bills of austerity transmitted before it releases the next batch of bailout EUR 110 billion agreed last year.

In a hand for Socialist Prime Minister George Papandreou, the conservative opposition said it is willing to support measures in the second vote after having opposed the first invoice of austerity.

"We will do our utmost to support the Government," said the legislator of the new democracy Nikos Dendias, a former justice Minister. "We will vote for two chapters of the Bill today."

Parliament resumed debate at 9: 30 am (0630 GMT) and the decisive vote was not expected to begin before 2 pm (1100 GMT) with results emerging some time in the afternoon.

Voting will be by roll-call, with members called to vote on both the general principle of the Bill and of the individual articles. Papandreou has called a meeting of the Council of Ministers after the vote.

While the Socialist lawmakers are expected to back the legislation as a whole, some said that they opposed individual clauses, such as increases in a levy on heating oil and an increase of the minimum income tax threshold.

In an effort to convince the undecided, new Minister of finance Evangelos Venizelos offered some concessions on tax increase as threshold exempt from tax for families with children.

The first austerity Act, which describes the hard program cuts and selloffs, passed by 155 votes to 138. Approval of the second would allow euro-zone finance ministers delete the release of EUR 12 billion at a meeting Sunday.

Approval by the IMF is expected on July 5, averting the immediate threat of failure.

After that, attention will switch to a second rescue plan, roughly equivalent to the EUR 110 billion rescue plan agreed in May 2010, including the Greece needs to continue until 2014.

UPCOMING ISSUES

Global stocks rallied Thursday for the third consecutive day and the euro reached its highest level of the dollar in 20 days on a sense of relief that looked like Greece to avoid the first bankruptcy of debt in the euro area.

Calm returned Thursday two days of violent protests that have blocked the city centre and the Centre of Athens, who was paralyzed during a strike for 48 hours from the ground by the powerful labor unions sectors public and private.

Teams of street cleaners swept broken masonry and broken glass after a night of clashes in the vicinity of square Syntagma right in front of the Parliament.

But protest banners and tents remained in place Syntagma, where demonstrators camped during more than a month show their anger at austerity measures at the wheel of many Greeks to despair in the worst recession since the 1970s.

"The implementation Act will pass, without problems," said Costas Panagopoulos, head of pollsters ALCO. "The problem for Papandreou is not in the Parliament, it is what is happening outside of Parliament: not implemented Syntagma, which is a few hundred demonstrators, but with all of the Greece 11 million people."

With the ordinary Greeks to years of standard of living fall as the Government struggles to slash a mountain of debts amounting to more than 150% of the gross domestic product, transforming action laws will be a major challenge.

Trade unions have promised to oppose privatization and other austerity measures. The Socialists, which interrupted the process of privatization of the Greece when they came to power, must sell 5 billion euros in assets this year or risk missing the targets within the framework of its EU agenda and the IMF, which would have cut funding once more.

"If Papandreou and Venizelos miss this last chance, and not to pursue the necessary reforms and a true skin of grief in the State of waste, they and the country will be an explosive situation in the fall at no way out"centre-right daily Kathimerini wrote in an editorial."."

(Additional by Harry Papachristou and George Georgiopoulos, written by James Mackenzie; editing by Mark Heinrich)