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    June 18, 2011

Greek Communists Protest Government Austerity Plans After Cabinet Reshuffle

   VOA News
   Protesters participate in a rally against the government's latest
   austerity measures and plans to sell off state enterprises in central
   Athens, June 18, 2011
   Photo: AP
   Protesters participate in a rally against the government's latest
   austerity measures and plans to sell off state enterprises in central
   Athens, June 18, 2011

   Thousands of Greek communist party supporters have marched through the
   capital, Athens, to protest government austerity plans aimed at
   preventing the country from defaulting on its massive debt.
   About 5,000 protesters marched to the Greek parliament Saturday, led by
   communist party leader Alex Papariga, who accused the government of
   colluding with its creditors to "skin the people alive." The march
   ended without incident.
   Greece has seen weeks of near-daily protests against Socialist Prime
   Minister George Papandreou's plans for tax hikes, spending cuts and
   state asset sales demanded by international lenders in return for
   emergency loans.
   Papandreou reshuffled his Cabinet Friday, naming his main Socialist
   rival as finance minister in a bid to ease party criticism of his
   handling of the crisis. His new government faces a confidence vote on
   Tuesday in parliament, where the ruling party holds a slim majority,
   with 155 of the 300 seats.
   If the government survives the vote, Papandreou is expected to seek
   parliamentary approval for the austerity package by the end of this
   month. Greek labor unions are threatening to stage a 48-hour strike
   when that happens.
   Greek Finance Minister Evangelos Venizelos is due to hold his first
   meeting with other finance chiefs of the 17-member euro zone in
   Brussels on Sunday.
   EU Economic and Financial Affairs Commissioner Olli Rehn has said he
   expects the euro zone ministers to agree to provide Greece with the
   next installment of a bailout loan approved last year by the EU and
   International Monetary Fund (IMF). The IMF has said it is ready to
   release its share of the $17 billion installment if Greece meets its
   austerity promises.
   Greece has said it needs the $17 billion to avoid defaulting on its
   debts next month. Athens also is seeking a second bailout package to
   keep its economy afloat beyond September, but EU leaders have been
   unable to agree on the terms of such a loan, including how much of its
   should be funded by the private sector.
   EU powers Germany and France moved closer to resolving the dispute
   Friday, when German Chancellor Angela Merkel agreed with French
   President Nicolas Sarkozy that private sector involvement should be
   voluntary. She previously had demanded compulsory participation by
   banks and other private lenders.
   The chairman of the euro zone's Eurogroup, Luxembourg Prime Minister
   Jean-Claude Juncker, criticized German pressure for private sector
   funding of a new Greek bailout, likening it to "playing with fire."
   In comments to a German newspaper published Saturday, he said a Greek
   debt default could spread the crisis to other highly-indebted EU
   nations, including Italy and Belgium, in addition to Spain.