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Wednesday, June 29, 2011

Greece set for austerity package vote

A fire burns as protesters clash with police over new planned austerity measures in Athens, Greece, on Tuesday.Protesters vow to take to the streets again Parliament plans to vote on the austerity package on WednesdayAll three unions that took to the streets Tuesday plan rallies Wednesday

Athens, Greece (CNN) -- Greek unions plan to rally again Wednesday, a day after riot police fired tear gas to disperse thousands of stone-throwing demonstrators who protested austerity measures.

All three unions that took to the streets Tuesday plan to rally for a second straight day. The protests injured 21 police officers and one demonstrator.

Protesters are rallying outside the Greek Parliament in the capital, where lawmakers are set to vote Wednesday on a five-year package of tax increases and spending cuts.

The newly appointed head of the International Monetary Fund, Christine Lagarde, appealed to the Greek opposition to overcome their political differences and join a national consensus on the reforms.

The 48-hour general strike kicked off early Tuesday, hobbling most of Greece's transportation systems but freeing workers to participate in demonstrations.

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Transportation disruptions took place on land, on sea and in the air.

Air traffic controllers periodically stopped work and flight traffic, according to their union. Stoppages also disrupted sea travel in the maritime nation, which encompasses many islands.

Greece must pass the austerity measures if it is to win the last $17 billion portion of a $156 billion bailout package from other European nations that was granted in 2010 -- and also to clear the way for an additional potential bailout package to keep Greece afloat going forward.

Greece needs the bailout funds to avert a default on debt repayments that are due as soon as mid-July.

A default would send shock waves through the European banking sector and potentially dent global economic confidence.

Greece faces "a critical juncture," said Olli Rehn, a European Union commissioner and the bloc's lead negotiator on the bailout. He urged parliament to pass the austerity measures.

"Both the future of the country and financial stability in Europe are at stake," Rehn said in Brussels. "I trust that the Greek political leaders are fully aware of the responsibility that lies on their shoulders to avoid default."

He warned that there was "no Plan B" to avert default, and said economic reforms -- although challenging -- were a better alternative for the Greek people.

Protesters lament that the cuts are being carried out on the backs of those who can afford it least.

CNN's Elinda Labropoulou and Diana Magnay contributed to this report.


CNN

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