Greek MPs approve controversial austerity measures amidst riots

Greek MPs have approved a controversial pack of new austerity measures and tax reforms, to achieve further bailout money, which will be discussed at a Eurozone finance ministers’ meeting later today.

Greek Prime Minister Alexis Tsipras has defended the controversial new pension and tax reforms approved by parliament, but the measures are deeply unpopular with Greek anti-austerity campaigners and trade unions.

Among the measures introduced after a two-day debate in parliament, the measures will see a reduction of some pension payouts, merging of several pension funds, increase in social security contributions and raise in taxes for those on medium and high incomes.

Protesters gathered in Athens ahead of the vote and threw petrol bombs at police, according to BBC reports. Trade unions insist the country cannot bear another round of austerity, but Tsipras said the bill aimed for a “sustainable” system that would “have social justice as its core principle”, as only 7.5% of pensioners would see a cut in the money they got.

He added that new higher contributions would safeguard the country's state pension provision.

The controversial bills, worth €5.4bn in budget savings, were also approved following a three-day general strike that had brought much of the country to a halt.

Tsipras said that the finance ministers’ meeting on Monday would be “a very important day” given that debt relief for Greece would be under discussion again.

The BBC adds that the so-called Eurogroup meeting is expected to discuss new debt relief measures, with a view to avoiding the prospect of a default in July, when Greece is due make its next major repayment to the IMF and the European Central Bank.