Greece's cabinet approves tough austerity measures

PanARMENIAN.Net - Greece's cabinet Saturday, Feb 11, approved tough austerity measures demanded by EU and IMF creditors after the prime minister warned that a failed debt deal and default would spark "uncontrolled chaos".

According to AFP, the coalition government, hit by defections on Friday, approved the belt-tightening measures on a day that saw renewed street clashes between protesters and police and the start of a two-day general strike.

Prime Minister Lucas Papademos issued a stern warning after six members of his coalition government resigned in protest at the new cuts.

"A disorderly default would plunge our country into a disastrous adventure," he told the cabinet. "It would create conditions of uncontrolled economic chaos and social explosion."

He warned that "sooner or later, (Greece) would be led out of the euro" and stressed: "This is an hour of historic responsibility."

The remaining cabinet members in the early hours of Saturday unanimously approved the debt deal and austerity measures, which save Greece from a disorderly default in March, the prime minister's office said.

The Athens News Agency said the deal was submitted to parliament for a vote Sunday but government spokesmen could not be reached for comment.