Amid mounting Greek fears that Europe's escalating debt crisis could derail efforts to negotiate a second bailout for the debt stricken nation, Athens' interim coalition government has speeded up the process to pass the budget which aims to reduce the deficit from more than 9% this year to 6.7% by the end of 2012 through a combination of spending cuts, tax increases and public sector job losses.
Addressing the 300-member chamber, Antonis Samaras, the conservative New Democracy leader, said with Greece heading for a fifth year of recession it was "essential" that the priority was now put on kick-starting the economy through jobs and growth.
"Joblessness is mostly affecting our youth and every year the state loses about €300m in unemployment benefits and revenues alone," he said. "Greece, the country which has been at the forefront of the crisis, like all of the eurozone, is in transition. In a year from now nothing will be the same," he predicted. "Both will have changed enormously."
Given the broad backing Lucas Papademos' national unity government enjoys, the austerity budget is expected to be easily approved. But the savings envisaged in the budget – estimated at €11bn (£9.5bn) – are not expected to be so easily accepted by a population that has slid increasingly into penury as a result of successive wage and pension cuts, tax hikes and benefit losses.
For more: Debt crisis: Greece speeds up process to cut budget deficit | Business | guardian.co.uk
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