Athens On Fire

Under severe pressure by Germany and the other EU nations, the Greek parliament finally agreed to the harsh austerity program the EU demanded in exchange for yet another €130bn bail out:

( Greek PM)Mr Papademos warned earlier the €3.3bn package of cuts was “the only alternative to a catastrophic default ... that would force Greece, sooner or later, to leave the euro.”

“The social cost of this package is limited in comparison with the social and economic disaster that would follow if it is not adopted,” he said.

Lawmakers voted 199-74 in for the cutbacks, but with heavy dissent among the two main coalition members.

In response, the Socialists expelled 22 members and the conservatives expelled 21 lawmakers, reducing their majority in the 300-seat parliament from 236 to 193.

Intense rioting broke out in Athens as the new of the vote circulated, and has reportedly spread to the islands of Corfu and Crete, the northern city of Thessaloniki and towns in central Greece, the worst hit town in that part of the country being Volos, where the town hall and other buildings were burned to the ground.

Among other things, the new cuts call for cutting one in five civil service jobs and slashing Greece's minimum wage by more than 20 per cent.In exchange, as part of the new bail out package Greek bond holders agree to take a 'haircut' of 70 per cent of the value of their holdings.It will be years before anyone buys Greek bonds again.

In Athens,crowds of rioters set bonfires in front of parliament and only squads of dozens of riot police formed lines kept them from making a run on the building. The police fired fired dozens of tear gas volleys at rioters, who attacked the police with firebombs and chunks of marble broken off the fronts of luxury hotels, banks and department stores.

Masked rioters also attacked a police station with firebombs and stones.

Streets all over Athens were strewn with stones, smashed glass and burnt wreckage, while terrified passers-by sought refuge in hotel lounges and cafeterias.Looting was wide spread as shop windows were smashed, with the police occupied in guarding Parliament,City Hall and other public buildings.

Money quote from one rioter via Twitter: "I hate the deal. Maybe if I wreck this city I can get a job in construction building it up again."