One dead amid protests in Greece

Police clash with masked demonstrators in Athens on October 20, where tens of thousands of protesters rallied.Clashes again break out in Athens between protesters and policeOne protester dies after a cardiac arrest, hospital officials say Protesters are fighting planned austerity measures that will mean job lossesEuropean Union leaders worry that Greek debt threatens the euro

Athens, Greece (CNN) -- Fighting broke out among police, rioters and other demonstrators during anti-austerity protests in Greece Thursday, with one demonstrator dying amid the disturbances.

The violence came as tens of thousands of Greek protesters rallied in the streets of Athens for a second day, while lawmakers prepared to vote on a new round of tough budget-cutting measures aimed at bringing down the national debt.

After a peaceful start, violent clashes broke out Thursday afternoon between rioters and the police, and between the rioters -- described as anarchists by reporters at the scene -- and some union demonstrators.

Tear gas was fired into the crowd, while rocks and fire bombs were thrown.

The protester who died was a member of the PAME workers' union, lawmaker Makis Voridis told parliament. Hospital officials told CNN he was a 53-year-old man who suffered a cardiac arrest.

The Greek minister for health said the demonstrator had been taken to an Athens hospital without a pulse and could not be revived, but he had no injuries. Earlier reports suggested he had been injured.

Despite demonstrations nationwide Wednesday, lawmakers approved the austerity measures in principle and are to vote on them individually Thursday.

"We have no hope. The only hope we have is the strength of the people," said protester Vagelis Filezis, a civil engineer.

He said Europe's leaders were trying "to save the banks but they don't think about the people."

And he warned Italy and Spain, which are also facing debt crises: "Look at us. This is where you will be in two to three years."

Organizers had urged protesters from all over the country to come to Athens Thursday, suggesting the crowd could be larger than the 70,000-plus police estimated Wednesday.

Organizers estimated the turnout Wednesday at 120,000, which would make it one of the biggest protests in the country in years.

Police said there were about 40,000 people on the streets Thursday morning -- fewer than at the same time a day earlier -- and about 3,000 police officers. The mood early in the day was good-natured, with people sitting in the street as pop music played over sound systems.

On Wednesday, clashes between protesters and police in front of the Greek parliament building left at least six protesters and 15 police officers injured, authorities said. At least 15 people were arrested.

Some marchers Thursday accused the government of planting troublemakers in the crowd to spark violence.

"They have never been caught," said teacher Thannasis Karametsus. "Why not?"

Strikers in Greece aimed to shut down wide sectors of the country, but lawmakers passed the new austerity law in principle by 154 votes in favor to 141 against, with five lawmakers absent.

"Don't bow your head, it's time for resistance and struggle," marchers chanted in the capital Wednesday as they gathered for the union-backed demonstration.

The violence broke out around lunchtime in one corner of the square, beside Parliament House, as a group of protesters dressed mostly in black threw rocks and Molotov cocktails at police.

Officers fired tear gas and stun grenades, or "flash bangs," in return, sending noisy detonations echoing round the square.

Smoke filled the area by mid-afternoon as a fire burned in front of the Finance Ministry, forcing many peaceful demonstrators to move away.

"I'm here for my children and everyone else's children. Those punks in there have destroyed everyone's lives," said former railway worker Diamandis Goufas, 62, pointing at parliament.

Greeks are angry at yet another round of planned austerity measures as Greece tries to bring down its stratospheric debt.

Lawmakers are trying to cut government costs to reassure international backers it is doing enough to earn the bailout funds they have promised to pour into the country.

The new bill would lead to around 30,000 job losses and further cuts to wages and pensions for workers in the public sector.

European Union leaders are scrambling to minimize the effect of Greece's debt on their common currency, the euro.

Over the weekend, finance ministers from the world's largest economies pledged their commitment to take "all necessary actions" to stabilize markets.

They aim to keep banks well capitalized so they can weather the effects of any defaults by Greece or other indebted countries, such as Portugal, Spain, Ireland or Italy.

But there appears to be a split between France and Germany -- Europe's two largest economies -- on how to do it.

Germany has stressed that individual European states should inject capital into domestic banks that lack sufficient buffers. But analysts say France is opposed to this idea because it could jeopardize the nation's top-tier credit rating.

European leaders are expected to hear concrete details about how the plan might work at a European Council meeting Sunday.

European Union heads of state are widely expected to finalize the plan in early November at a meeting of the Group of 20 world economic powers.

CNN's Andrew Carey, Elinda Labropoulou, Diana Magnay and Ben Rooney contributed to this report.

View the original article here

Greece tax burden reaches new settlers

Retirees Bob and Anna Scott now regard Crete as home but face increased taxesRetired couple face extra property tax of €500 ($690) in the next yearEuropean Commission says Greek debt for 2011 stands at nearly €353 billion ($487billion)Swimming pools, big cars and houses are being targeted to raise extra cashGreece has teetered on the edge of defaulting on its debts

London (CNN) -- A petty crime sealed a final decision to retire to the Greek island of Crete -- but it could be legitimate government action to rescue Greece from economic melt-down that eventually forces Bob and Anna Scott back to the UK.

Lured by the Mediterranean diet and climate, the couple moved to the village of Kokkino Horio in western Crete from Gloucester in 1997. The burglary at their UK home was enough to seek a permanent move to a country known for its friendly welcome.

"There was no crime here in those days... and it's still the case," said Bob who recounted the story of leaving a camera in a taverna and returning the next day to find it still hanging on the back of the chair where it was left.

Initially they rented but seven years ago they bought a plot of land, built their own home, learned Greek and settled.

The couple still love the people and the country they have adopted but Bob paints a picture of a nation in a mess -- one where strikes are commonplace, officialdom is mistrusted and illegal payments and tax evasion are part of everyday life.

However, the medicine needed to fix it could force out those who have retired to a country which is imposing higher taxation to rid itself of a chronic debt problem.

According to Eurostat, Greece owed more than 140% of its annual GDP in 2010, and the country is currently reliant on a huge bailout. The European Commission says Greece's projected debt for 2011 stands at nearly €353 billion ($487 billion).

Bob and Anna say they are facing an extra property tax of €500 ($690) next year and for the moment they say they can manage, but accountants are already sending letters to their clients warning that there may be more taxes on the way.

Another British couple, Roy and Kate Cooper, who have also settled in Crete, say future tax increases may hit some ex-pats quite hard, particularly those on pensions.

"Luckily we haven't got a swimming pool or big house or big car which are being targeted to raise extra cash," said Roy.

As well as extra taxes, the Greek government is working hard to stamp out tax evasion and reform public pensions. According to the Greek finance ministry's figures, last year it seized 555 yachts and imposed fines of €3.4 billion ($4.7 billion).

But Bob Scott says he continues to see regular evasion, explaining that shops may charge €25 ($35) for a purchase but give a receipt for €15 ($21) or no receipt at all. And he says many workers will ask for a small cash bribe to carry out a favour.

"Graft is a way of life," said Bob. "People are looking for it. We've got used to it but we don't pay backhanders to people if they ask."

Despite the frustrations, the couple are sympathetic to the plight of the Greek people and understand their anger.

"The current situation is driving most people to distraction because they realize the things being imposed on them are punitive -- absolutely nothing is being done to promote growth," said Bob. "They see people at the top getting away with what they perceive as blue murder.

"There are so many good things about this place. The people are very nice, friendly, helpful and generous when they know you. We really enjoy it here and we wouldn't want to go back to the UK unless we were forced to."

However, the couple believe an increased tax burden on their UK pension, which is their only income, could make it a possibility.

The prospects for Greece are not promising. It has teetered on the edge of defaulting on its debts and the population is resentful of the austerity measures introduced so far. There are frequent protests and a public sector strike last week brought the country to a standstill.

And there are other problems. According to Bob, local hotels have pegged their room prices for three years, but he said taxi driver strikes leave tourists stranded at the airport, and extra taxes could further discourage visitors and drive away those who have already moved to Greece and spend their money there.

View the original article here

Barroso implores EU to act on Greece

José Manuel Barroso, president of the European Commission, said the EU needs to act now on bailing out Greece.Barroso: EU should stop prevaricating and quickly adopt a plan to bail-out GreeceBarroso did not specify how to help Greece, Europe's banks or boost the rescue fund

(Financial Times) -- Europe's leaders should stop prevaricating and quickly adopt a plan to bail-out Greece, recapitalise the region's banks and give the eurozone's rescue fund more firepower to stop economic contagion, the president of the European Commission said.

José Manuel Barroso did not specify how to help Greece, Europe's banks or boost the rescue fund, highlighting the fierce divisions that still exist among European officials and among national capitals over the way forward -- divisions that must be bridged by the time EU leaders gather for a summit in less than two weeks.

Senior EU officials said there was an intense debate within Mr Barroso's Commission over whether to specifically back a 9 per cent core tier-one capital ratio for banks -- the key measure for financial strength -- far higher than required just three months ago in European stress tests.

In the end, Mr Barroso omitted the figure from his speech and instead called for "a temporarily higher capital ratio after accounting for exposure" to sovereign debt of shaky eurozone economies, which most major European banks hold in large quantities.

He also proposed that banks requiring recapitalisation be barred from issuing bonuses to executives or dividends to shareholders.

Despite the lack of detail, Mr Barroso's blueprint, presented to the European Parliament, set out in public for the first time all the elements of a grand bargain EU leaders are hoping to finalise at their meeting on October 23.

"To break the vicious cycle of uncertainty over sovereign debt sustainability and over growth prospects, we need comprehensive solutions now," Mr Barroso said. "Now is the time to bring them all together, to once and for all meet the depth of the crisis with a full comprehensive and credible response."

In addition to quick action on Greece, banks and the rescue fund, Mr Barroso called for an overhaul of the way the eurozone is governed and quick action on longstanding proposals aimed at boosting economic growth.

The most contentious issue, however, continues to be the size of losses to be pushed on private holders of Greek bonds. According to European officials, Germany continues to urge a "haircut" of about 50 per cent, but others, led by France and the European Central Bank, are resisting any move that could be considered a "credit event" -- an explicit default that would trigger insurance contracts known as credit default swaps.

There is also division over the banks plan. Mr Barroso's Commission and the European Banking Authority, the region's top banking regulator, are in broad agreement that banks should be required to raise their core tier one capital ratio to around 9 per cent, effectively bringing forward the EU's implementation of the Basel III bank accords, which have a deadline of 2019.

A 9 per cent core tier one capital threshold under the EBA definition is roughly equivalent to the 7 per cent requirement under Basel III.

The EBA assessment of the capital shortfall will apply the higher capital level on the region's banks once it takes into account big write-downs on the value of sovereign debt holdings, so that the analysis better reflects current distressed market conditions.

This analysis, which is due to be complete by next week, will include systemically important banks and exclude smaller institutions such as Spanish cajas and some German savings banks, which were part of the 91 institutions in last summer's stress test.

A debate is still raging between member states over the when and how banks should be required to reach the new, higher capital levels.

Germany in particular is raising concerns over the threshold and timing, while France is more comfortable with bringing forward Basel III requirements; some of its banks have already promised to meet the goal. Officials say Paris remains determined to ensure that European funds are ultimately available for bank recapitalisation, although the French government ruled out tapping the European Financial Stability Facility to prop up its financial institutions.

© The Financial Times Limited 2011

View the original article here

Barroso implores EU to act on Greece

Europe's leaders should stop prevaricating and quickly adopt a plan to bail-out Greece, recapitalise the region's banks and give the eurozone's rescue fund more firepower to stop economic contagion, the president of the European Commission said.

View the original article here

Greece tax burden reaches new settlers

New taxes designed to help rescue Greece from its severe debt crisis could hit those who have retired or settled in the country.

View the original article here