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Greek PM fires bleak warning on austerity

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Greek PM fires bleak warning on austerity

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Greek Prime Minister Lucas Papademos has warned his country it faces a steep decline in living standards if MPs reject a new austerity bill.

He said Greece would be “drawn into a vortex of recession” and would eventually exit the euro.

Parliamentarians will vote later today on fresh cuts required to secure a 130-billion-euro bailout from the European Union and the International Monetary Fund.

They include a 22 percent cut in the minimum wage, lower pensions and 15,000 public sector layoffs.

If the bill passes, Athens must then explain to Brussels how it will achieve 325 million euros of savings this year before receiving more emergency loans.