Greek parliament approves austerity plan.
Prime Minister George Papandreou had warned that there was no plan B to avoid the worst; cuts of more than 28 billion euros will be made in the country.
The Greek Parliament approved the controversial five-year fiscal austerity plan, as promised to international institutional creditors. According to a count by Dow Jones, the package was approved with at least 151 votes in favor in the 300-seat Parliament.
Approval of the €28,4 billion package of spending cuts and new taxes is a condition for the release of the €12 billion tranche of last year's €110 billion bailout program and for the approval of new financial aid. Without these resources, Greece would have to declare a moratorium on its debts.
Prime Minister George Papandreou had warned Parliament that there was no plan B to avert the worst for the country if the measures were not approved.
Tomorrow the government faces another test when Parliament votes on legislation to implement each article of the austerity plan and on a €50 billion privatization plan. But with the approval of the measures today, tomorrow's vote is expected to be a mere formality.