Riots in Greece After New Budget Laid Out

Photo Source: Time-CNN

Violence erupted in the streets of Athens this week by protestors opposed to Greece’s new budget plan for 2010. The riot squad and ample police support were relied on during the riot, which resulted in tear gas and violent measures on part of the police in order to calm rioters. Minimal arrests were made in comparison to the amount of protestors, which numbered in the thousands.

The protests, and ensuing riots, were sparked by the Greek government’s announcement of a 4.8 billion euro austerity measure. The plan includes a freeze in pensions, cuts to government salaries, heightened taxes on luxuries like alcohol and tobacco, and a sales tax hike from 19 to 21 per cent. The Greek government’s move comes in a strategic political framework attempting to show European Union partners that it can avoid bankruptcy.

The controversial budget is in response to the world economic crisis, that has left many European Union nations in bleak financial state. Instead of claiming bankruptcy and relying solely on international support from the World Bank and IMF, the government of Greece sees financial stability available through tax hikes, expenditure cuts, and limited IMF support. The government has not ruled out accepting loans from IMF, but for now is trying a sovereign approach. Analysts see this as a motivated political move: Leaving the IMF out of Greece’s problems, for now, shows the stability of the European Union, dissolving any thought that it is doomed financially.

Whether or not this tactic of the Greek government will be a positive move in the long run will have to be judged later. For now, the general working public of Greece is outraged at the decision. Outlandish tax hikes that target popular demographics, and cuts to pensions, means a reassessment of living conditions for the majority of citizens.

Originally published at campusintel.com