The Greek unicameral parliament adopted overnight the medium-term budget program for 2013-2016, which provides for a reduction in spending by 13.5 billion euros in exchange for another 31.5 billion tranche of loans from the EU and the IMF.

The law was adopted against the backdrop of a hundred thousand peaceful protest and accompanying riots that took place on Wednesday evening in front of the country's parliament building. 153 out of 300 deputies voted for the bill, 128 were against, 18 abstained, and one did not vote. The ruling coalition of center-right, center-left and leftists missed 23 abstentions, but gained the required majority. Center-left leader Evangelos Venizelos expelled five deputies from the faction who abstained or voted against, and one who did not show up to vote. Center-right leader and Prime Minister Antonis Samaras expelled one MP who voted against austerity measures.

The law, adopted at the insistence of creditors, will lead to a reduction in wages and pensions from 3% to 25%, depending on the current pay scale. The bill finally abolishes some social benefits that were in force before the crisis. Thus, the 13th and 14th salaries and additional payments for productivity are becoming a thing of the past. The social security system has been completely overhauled: disability, childcare and unemployment benefits are tied to family income. Child benefits will be cut especially sharply to 40 euros per month. Saving measures also involve the dismissal of civil servants, 2 thousand people in 2012. At the request of creditors, regulation of a number of professions and services is being simplified.

The new austerity measures come as the Greek economy once again beats worst forecasts. The 2013 Budget projects a sixth consecutive year of recession, with GDP contracting by 4.5%. The national debt should amount to 189.1% of GDP versus 182% originally planned.

Based on materials from RIA Novosti

Greece adopted a €13.5 billion cost-cutting program