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Greece cannot become a ‘bottomless pit’ – Germany

A bus ticket kiosk burns in Athens.
A bus ticket kiosk burns in Athens.
Image: Kostas Tsironis/AP/Press Association Images

GERMANY’S FINANCE MINISTER has told a national newspaper that Greece will be saved but added that Athens is required to not only decide on austerity but also put it into practise.

Wolfgang Schaeuble’s comments to Welt am Sonntag come ahead of this week’s discussions between eurozone finance chiefs to ratify a second bailout package for Athens.

He said that Greece will still be required to “do its homework” and that “promises are not enough any more”, according to Bloomberg. The finance minister also told the Sunday paper that Greece cannot become a bottomless pit.

Finance ministers will gather in Brussels on Wednesday for the extraordinary meeting as they failed to allow the €130 billion financial lifeline earlier this month.

Last night, however, Greek ministers passed the austerity measures demanded by the European Union and other creditors which should see the money released.

Athens is required to pay a €14.5 billion bond on 20 March but the bailout needs to be approved by 15 February to give certain governments sufficient time to release funds. Without the bailout, Greece will not have the funds to pay the loans falling due next month.

The news of last night’s vote was met by fierce riots in Athens as the public showed its anger in the face of further public spending cuts and job losses.

More than 120 people were injured during the violent protests as police clashed with rioters and buildings were set ablaze. About 45 businesses were damaged as a cinema, banks, mobile phone shops and cafés were attacked.

There was also violence reported in six other cities. The town hall and tax office in Volos were set on fire and damaged.

Greece cannot become a ‘bottomless pit’ – Germany
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  • Greece Financial Crisis

    A cinema burns in Athens. (AP Photo/Kostas Tsironis)
  • Greece Financial Crisis

    Protesters pass by a burning cinema in Athens, Sunday, Feb. 12, 2012. (AP Photo/Kostas Tsironis)
  • Greece Financial Crisis

    A fireman tries to extinguish a burning cinema in Athens. (AP Photo/Kostas Tsironis)
  • Greece Financial Crisis

    Plain clothes police officers arrest a unidentified man who disturbs the debate at the Greek Parliament on Sunday. (AP Photo/Eurokinissi)
  • Greece Financial Crisis

    A protester gestures at riot police during clashes in the northern Greek port city of Thessaloniki. The black banner in the background reads ''Occupation.'' (AP Photo/Nikolas Giakoumidis)
  • Greece Financial Crisis

    Firefighters try to extinguish a fire at a Bank of Cyprus branch. More than 45 buildings were damaged last night, including banks, cafeterias and a cinema. (AP Photo/Thanassis Stavrakis)
  • Greece Financial Crisis

    AP Photo/Thanassis Stavrakis
  • Aftermath of riot in Athens

    Image: (Kyodo)
  • Aftermath of riot in Athens

    A street where rioters and police clashed near Athens' Syntagma Square. Image: Kyodo

Sunday’s clashes erupted after more than 100,000 protesters marched to the parliament to rally against the drastic cuts, which will ax one in five civil service jobs and slash the minimum wage by more than a fifth.

Prime Minister Lucas Papademos urged calm.
Vandalism and destruction have no place in a democracy and will not be tolerated. I call on the public to show calm. At these crucial times, we do not have the luxury of this type of protest. I think everyone is aware of how serious the situation is.”

Following the vote, which saw the austerity measures pass 199 to 74, a number of members of parliament were expelled. The Socialists lost 22 lawmakers, while conservatives expelled 21, reducing the coalitions majority from 236 to 193.

Markets have responded well to the overnight vote with the euro gaining 0.4 per cent.

-Additional reporting by AP

More: Major riots in Athens as Greek parliament approves austerity deal>

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Comments (34 Comments)

  • Ann Illing 13/02/12 #
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    Oh great ..The markets have responded well with the euro gaining. Thats all right then. And Athens is to put austerity into practise. Austerity for the masses that is not the elite making these decisions. I have a feeling we aint seen nothing yet. When people have nothing to loose then reason goes out of the window.

    Reply
  • Torpedo 13/02/12 #
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    Why do some people think that setting fire to building and putting more people out of work is the answer?

    Reply
    • Réada Quinn 13/02/12 #
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      Very few rioted. But that’s not news.

    • Neil 13/02/12 #
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      Let´s face it, most of those calling for “revolution” are just looking for cover for a bit of looting.

    • Dave 13/02/12 #
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      That’s nonsense Neil. We do need a serious change – and absent the democratic process doing whats it meant to bloody do and deliver that change – than perhaps other methods will be required.

    • Neil 13/02/12 #
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      @Dave
      No form of democracy will handle the fact that a country is spending more than it can afford . People will vote for whoever promises low taxes and high rates of spending. But the maths just don´t allow it. So they´ll vote in the next crowd who promise it. But I still agree with that old quote about democracy being the best of a bad lot as regards political systems.

      Anyone looking for an armed revolution has no love of democracy. They just want money and power that the ballot box does not allow them.

      I´ll stick with the ballot box in Ireland thank you very much. If this government can´t get Ireland back on track then they´ll get voted out. That´s the system.

      Meanwhile I´d ask all those who claim to be on the side of the “people” in their calls for running the troika out of town, why aren´t the unions on your side?

    • Jim Brady 13/02/12 #
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      If the government CAN get Ireland back on track, they will get voted out; there’s no way to do it without hugely unpopular cuts. THAT’s the system :)

    • Dave 13/02/12 #
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      Neil – I never suggested violent revolution! I’m more the peaceful civil disobedience kind. :-) my position is simple. Stop paying bank bondholders. Stop wasting our money on bloated government – and then I will pay what taxes need paying to sort the mess out. Til then – no deal!

    • Réada Quinn 13/02/12 #
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      Dave. Neil only hears what Neil wants to hear. I’m all for peaceful revolution too but he pictures me armed with a bayonet. Talk to the wall ;)

    • Aydo 13/02/12 #
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      Neil if you can wait 4/5 years to change things I don’t think you fully understand the seriousness of the situation.

    • Neil 13/02/12 #
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      @Dave
      well, peaceful demonstrations is one thing, those applauding rioting is another.
      But immediately when you say one of the things you want is to stop “wasting our money on bloated government” then who decides where the bloating is? Maybe you just mean the really highly paid politicians and civil servants. But Irelands huge primary budget deficit means the country is borrowing money to fund the pay of even mid-ranking civil servants . You could raise income taxes to cover that. But then your average private sector worker won´t be happy. You could raise the corporation taxes, but then your export sector will complain.
      You can decide to default, but if you can no longer borrow then you need to cut spending and raise taxes. Who decides who pays?

      That´s the thing with politics. It´s different sections of society fighting their corner, with everyone claiming they represent the real interests of the country (as long as their section of society is taken care of first). It´s messy and its far from altruistic or idealistic.

      People get frustrated, and the idea of “revolution” to cut through it all seems tempting. But after the revolution who will run the country? What rates of taxes will be paid? Where will those taxes go? You´re back to the messy business of politics.

    • Daire Kennedy 13/02/12 #
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      Well put Dave,
      I think most reasonable people would be in agreement with that. It’s time to put an end to TD’s bloated wages and expenses, overpaid public sector workers like college lecturers, and all other forms of waste in public spending. If we can’t afford to pay back loans borrowed by defunct banks we shouldn’t pay them back either.
      On a sidenote I’m not a public sector basher but there are some sections that are grossly overpaid.

    • Neil 13/02/12 #
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      @Aydo.
      We had an election a year ago. Will we have an election every 12 months until your party finally wins? Because guess what, the party that runs on a policy of unilateral default won´t win anyway when they have to make clear the impact of no longer being able to borrow to fund PS pay and SW.

    • Ciaro 13/02/12 #
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      So what is the answer when you have nothing left to lose?
      If you don’t know don’t worry, you’ll see how it feels in another couple of years when Ireland is inthe same boat as Greece.

    • Daire Kennedy 13/02/12 #
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      Neil,
      There are tough decisions to be made, not just here but in alot of countries. I don’t think anyone is denying that. Greece’s problem is that it put off making those tough decisions for a long time and is now a basketcase.
      We have tough decisions to make here too, I think most people accept that. But those making the tough decisions are not feeling the impact of those decisions, they are passing bills to pay themselves more while all around them are suffering.
      Repaying bonds to a defunct bank is a tough decision and the wrong decision in my opinion, maybe not in yours. But when you look at it from our elected representatives point of view, they wouldn’t have much of a case for paying each other 40K+ in expenses if they couldn’t pay back debts.
      Make no mistake, these tough decisions have to be made, the sooner the better, if they are not made others will make them for us.

  • Diarmaid Twomey 13/02/12 #
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    The irony of all this chaos is both sides are deluded somewhat. Whilst I understand the Greeks frustration, it boils back to budgeting and simple math. They don’t tax effectively, never have, so their deficit is something that has to be fixed with or without the troika. Throwing toys out a pram ain’t going to change that. The other crowd then think that the best solution to over indebtedness is more debt. It’s just a surreal situation, with pretty naive and dangerously stupid stances on both sides.

    Reply
  • Joe Sixtwo 13/02/12 #
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    Herr Schaeuble must have released by now that Greece is a bottomless pit just like the greed of the bondholders.
    A problem that also needs to be addressed is the fact that the Greek Government lied about their difficulties in order to enter the euro zone from the start.
    The Greek people have every right to be angry because of the extent to which they were lied to.

    Reply
  • Kerry Blake 13/02/12 #
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    It’s a bit ironic to see Papademos talking about democracy considering how he was appointed PM of Greece. Cannot see how the latest program will improve things. Cutting everything will not increase jobs meaning the tax take drops again leading to further cuts.

    Reply
  • Keith Twamley 13/02/12 #
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    Everyday on here, there are calls for people to take to the streets, show that we won’t take it any more and to stop being so passive, this highlights the truth though, the public will always be ignored, 100,000 ignored, millions of people ignored around Europe. Banks will be protected no matter what, people will be oppressed no matter what. Europe is corrupt. Europe is evil.

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    • john g mcgrath 13/02/12 #
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      The last big protest here was the paye marches that brought hundreds out on to the streets.That was called and organised by the unions and it brought change.
      Until the unions put their weight behind a protest it will struggle to reach those big numbers.
      The problem now is that O Connor and the lads will do nothing as long as their deal suits them
      They have been bought and paid for so O Connor and his ilk will do nothing until the austerity calls at their doors.
      Pull up the ladder Jack !!!

  • atlantic soup 13/02/12 #
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    Hard to fathom but if the Germans are so super smart & Greeks so useless, why did they leave them into euro, why did they and do they lend money to them..? Is it genuine love of European harmony or a more “idealistic”/transformative inclination in their make-up? Is Greece really that vital to euro-economy other than the supersmart German wealth/investment/greed tied up in it?

    Reply
    • SeanS 13/02/12 #
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      Who said the germans were supersmart? Who said the greeks were useless? Greece was allowed into the euro because it effectively cooked its books to meet the criteria. It also mismanaged its revenue and spending. The EU is lending it money because it has a vested interest in the stability of its member states and the stability of the currency, same reason they’ve lent to us and portugal. You speak about german greed, and yet, the irony is, that german tax payers have more than likely posted comments with a similar sentiments regarding paying for greek, irish and portugese greed.

      As somebody has mentioned above, everybody seems to want to protect their own interests, so who’s right? and who’s wrong?

    • atlantic soup 13/02/12 #
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      Seriously telling me that Germans had no idea of Greece’s civil & fiscal culture before they entered the Euro? & I did say they may well have good intentions but they certainly come off as superior beings, which is the general impression & tone that abounds at the moment… facts & history are paramount yes but impression & tone is vital in volatile situation.. and probably nobody knows who is right and wrong because everybody is right & wrong, would be nice to see the Germans put their hands up too and admit that…

  • Owen McCarthy 13/02/12 #
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    For Greece to move forward they ultimately need to leave the euro. There will be an initial shock to their economy however long run they will be better off. Shame the elected officials can’t see the big picture. Euro will be stronger without them too.

    Reply
  • MojoRise 13/02/12 #
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    I think we all need to get on utube and Listen to rage against the machine

    We need to stop the machines (governments, agencies, fbi, cia, private banks) they are cancers eating there hosts one by one….

    Go anonymous your the only group fighting and capable of doing so for our internet freedom….

    Soon and not just in Eire but all weaker countries will have been sold off to these private bankers and this will have been facilitated by politicians asleep at the wheel. The politicians can well afford private hospital treatment for there loved ones if something goes wrong that’s why they shut hospital beds down. They really don’t give a shit about any off us…. We do need to turn this machine off and NOW.

    We need to Wake up before its to bloody late before the auction is over

    Reply
    • SeanS 13/02/12 #
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      Taxes, through the direction of the government, are used to offer many public services from education, transport, health, county council funding etc.. When tax revenue is low, or borrowing too high, the options are, unfortunately, either to increase taxes, reduce spending on services, or in our case, a bit of both. The reason hospitals have been closing isn’t because “politicians can well afford private hospital treatment for there loved ones if something goes wrong that’s why they shut hospital beds down. They really don’t give a shit about any off us…”, it’s because at the minute, we’re looking to reduce expenditure to something more in-line with the tax take.

    • MojoRise 13/02/12 #
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      Absolute BS comment SeanS

      They the politicians keep giving massive pay rises to there advisors. They keep ripping the country off on god knows untold amounts of expenses claimed.

      Our politicians have ZERO accountability for anything they have done. They have destroyed this country…. A country needs to be run like a business and not by a bunch of school teachers

      For god sake with all due respect school teachers can’t nogotiate with the Trioka henchmen it’s laughable except its sad.

      They keep doing stupid deals with private companies e.g. Mr Rabbit and the latest round of mineral exploration license granted… Any direction u look u find nightmares resulting from very poor policital decisions. The politicians look after there there familes and there buddies……

  • Tigerisinthezoo 13/02/12 #
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    Ok so the Irish budget deficit is meant to be around 20 billion. Can anyone tell me how much public pay, pensions and social welfare have to be cut until the budget is balanced. An economist had a few years back that public pay could have to be cut by upto 25%. It has already been cut by around 14% between paycut and pension levy. So could this prediction be what is needed to balance the budget?

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  • Derek Durkin 13/02/12 #
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    Probably 5% of the people rioted and anyway the police attacked first with tear gas. Thats the reaction they wanted so they can tar them all with the same brush and for the unelected criminal papajayous or whatever his name is who cooked the books in the first place to call the protesters un democratic is takin the piss.

    Reply
  • Paul O'Keeffe 13/02/12 #
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    People seem to be forgetting that this bailout is not about rescuing the Greeks and all about paying a ransom to the banksters. The PR agencies are really earning their cut. Lets be real here, Shaeuble, Papalazarou and all the rest of them don’t give a damn about society and paying for public services etc. Sure some Greeks took advantage of a broken system, some Irish did the same, but feeding the parasitic financial terrorists any more is not going to help. We need a complete revolution. Wipe it out and start all over again.

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  • Kevin McCarthy 13/02/12 #
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    Greece a democracy? A unelected PM in charge? What is happening in Greece is economic warfare. It will destroy that country.

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  • Strongbow62 13/02/12 #
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    One of the reasons we haven’t had that level of violence here is because we have a relatively good social welfare system ( moan if you want) but it keeps the pot from boiling over as people find themselves unemployed for the first time . There’s a lot of hyperbole about who to blame next , it was poles last week , public servants another. Each category of worker is slowly being fed into the media chewing machine. The sad part is we are all collaborating in the governments agenda. The media is the biggest offender, especially RTE which seems to have an uncanny knack of denegrating particular areas of government expenditure thus justifying cuts. The government is like a dentist drilling as close as possible to the nerve. They’ll know when they’ve gone too far, they might feel some pain themselves then.

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  • Report this comment

    I think as europeans we should be ashamed. I hope that Greece does not fall into complete chaos as Yugoslavia did. The Greeks.are our eu citizens &,letting this get out of control will reflect badly on the rest of the eu. Maybe this is the beggining of the collapse of the eu which will ultimately result in european conflict. I hope all the Greek bashers are ready for that because thats the only thing the the eu can be sure of. No eu no european security.

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