Greece Seeks Relief from Lenders after First Bailout Test

Local Editor

Greece's troubled left-wing government is seeking urgent relief from European lenders Thursday, a day after it pushed a harsh austerity package thought parliament, triggering a revolt in the ruling party and violence demonstrations in central Athens.

Finance ministers from countries using the euro currency will hold a conference call to consider rescue financing for Greece, while the European Central Bank will mull a request from Athens to increase emergency assistance to troubled Greek banks that have been closed since July 29.

In a post-midnight vote, Greece's parliament voted 229-64 to implement more austerity measures that include pension cuts and sweeping sales tax hikes. But the large majority was provided by pro-European opposition parties and in spite of deepening dissent within Prime Minister Alexis Tsipras' left-wing Syriza party.

Thirty-eight party lawmakers defied Tsipras - nearly in one-in-four - including Tsipras' powerful energy minister, the speak of parliament, and Yanis Varoufakis, the former finance minister who headed Greece's bailout strategy until his replacement 10 days ago.

The government described the vote as marking a "serious division" among its lawmakers, and indicated that dissenters in Tsipras' cabinet would be swiftly replaced in a Cabinet reshuffle.

Greeks have seen a dramatic decline in living standards since the debt-plagued country lost market access in 2010 and had to impose severe spending cuts in exchange for bailout loans from eurozone countries and the International Monetary Fund.

Before the austerity vote, some 12,000 demonstrators gathered outside parliament in the biggest protest against the government since Tsipras won elections in late January. The rally turned violent and several hundred youths attacked police, torched cars, and smashed office displays.

Police said about 50 people had been detained during the hour-long clashes that involved youths hurling rocks and petrol bombs outside parliament, and riot police responding with tear gas and baton charges.

Source: News Agencies, Edited by website team