Greece's parliament today approved major budget cuts by the debt-hit Socialist government amid Athens protests marred by violence.
Pressured by financial markets and the European Union, Greece announced on Wednesday €4.8 billion in new spending cuts and tax hikes to tackle its huge fiscal deficit and €300 billion debt pile.
Meanwhile, German Chancellor Angela Merkel said tonight that Greece does not need financial aid at present and that the stability of the euro zone was 'assured'. This came after talks with Prime Minister George Papandreou in Berlin.
Greece hit by more protests
The only buses on the Greek streets today belonged to the riot police. At the airport, more than 60 flights were cancelled as unions called impromptu work stoppages and protesters marched on parliament.
The protests escalated as an opinion poll showed strong opposition to some measures such as higher VAT and a freeze on public pensions but support for moves to raise tax on alcohol, cigarettes and luxury goods.
The survey also showed that 78% of people believed there was a high probability that all of the government's measures would be implemented.
Ratings agencies and other EU governments have said delivery will be key in determining whether Greece can re-establish its credibility on the world stage and as a borrower.
Figures published today showed that foreign investors bought 77% of a €5 billion bond sold by the Greek government this week with the biggest demand coming from Britain and Germany.
The latest protests took place as Greek Prime Minister George Papandreou travelled to Germany for a meeting with Chancellor Angela Merkel in the hope of persuading her to back more concrete EU support measures for Greece.
Papandreou has said it is time for the European Union to do its bit although Germany again moved to temper his expectations with Economy Minister Rainer Bruederle saying his government 'does not intend to give a cent' to Greece.
Opposition to cutbacks has so far been relatively muted for a country with a tradition of street protest. Police officials on estimated about 12,000 demonstrators were on the streets today, most behaving peacefully.
