7 May 2010

Greek parliament votes for spending cuts

6:59 am on 7 May 2010

Greece's parliament has voted in favour of the hefty cuts and reforms proposed by the government to address the country's financial crisis.

The vote cames a day after three bank workers died in a petrol bomb attack as demonstrations over the planned austerity measures turned violent.

As the vote was held, police fired tear gas disperse a group of about 150 protesters as they gathered outside parliament to protest against the measures.

Ahead of the vote, finance minister George Papaconstantinou told parliament that the "only way to escape bankruptcy" was to accept the 110 billion euro bail-out by the International Monetary Fund and European Union.

"The precondition is to agree on the three-year austerity plan," he told MPs.

The measures include wage freezes, pension cuts and tax rises.