29th June 2011
The BBC News website reports that the Greek prime minister George Papandreou has said that only his 28bn-euro (£25bn) austerity plan will get Greece back on its feet.
If the package is not approved, Greece could run out of money within weeks.
Greece's austerity package and the law that allows it to be implemented must be passed in separate votes later on Wednesday and on Thursday for the next instalment of the country's 110bn-euro bail-out to be released by the EU and IMF.
EU President Herman Van Rompuy warned that if greece went under it would have implications worldwide, not just for the single currency the euro.
The new IMF chief, Christine Lagarde said the austerity package needed to be approved: "The country's destiny is at stake.
"If I have a message this evening about Greece, it is a call to the Greek opposition… to join in national unity with the party which is currently in power."
The Financial Times website (paywall) reports that Greece will be committing “suicide” if its parliament fails to back the measures.
George Provopoulos, governor of the Bank of Greece, told the FT Greece’s economic crisis had been played down by politicians over the past 18 months as the country lurched towards a possible default.
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