[ti:Greek Spending Cuts Clear Way for Loans] [ar:Steve Ember] [al:Economics Report] [by:www.51voa.com] [00:00.00]This is the VOA Special English [00:02.40]Economics Report. [00:04.47]Greece has approved a plan [00:06.81]to raise taxes, cut spending [00:09.75]and sell government-owned assets. [00:13.33]This clears the way [00:15.32]for seventeen billion dollars [00:17.56]in loans from the International [00:19.65]Monetary Fund and the European Union. [00:23.50]The loans are a share of the [00:26.28]one-hundred-fifty-six-billion-dollar [00:29.19]rescue deal that Greece secured last year. [00:33.47]The money will help the government [00:36.14]to operate and pay its debts [00:39.32]until the middle of September. [00:41.76]But the austerity plan led [00:44.91]to a national strike on Tuesday [00:46.71]and Wednesday, along with [00:49.83]violent demonstrations in Athens. [00:52.77](SOUND) [00:55.11]Several hundred protesters [00:57.99]and police were injured. [01:00.38]The Greek parliament approved [01:03.27]the forty-billion-dollar plan [01:05.68]on Wednesday [01:06.72]and the details on Thursday. [01:09.71]Prime Minister George Papandreou [01:12.44]won more support than expected [01:15.14]for his proposals. [01:16.88]He appealed to parliament [01:23.16]to do everything possible [01:25.06]to avoid defaulting on the debts [01:28.34]of the birthplace of democracy. [01:31.10]Greece is expected to seek [01:33.88]more international help, [01:36.04]even though years of government [01:38.48]borrowing led to the crisis. [01:41.43]Many protesters said their government [01:44.78]is making decisions that serve [01:46.98]the interests of wealthy nations. [01:49.37]WOMAN: "I want to feel Greek again. [01:50.67]But I'm not Greek. I'm German, [01:53.05]I'm American. I don't know what I am." [01:56.96]But other Greeks, [01:59.35]including this man, [02:00.84]see the need for austerity. [02:02.68]MAN: "I think the policies [02:04.02]are a good step towards [02:05.17]finding common ground [02:07.06]with the European Union, [02:08.30]which is I think a vision [02:10.45]that all Greeks should aspire to. [02:12.39]I don't think any country can operate [02:14.53]in isolation these days, [02:16.14]especially a country the size of Greece." [02:18.57]Also this week, [02:19.78]the International Monetary Fund [02:22.14]chose French Finance Minister [02:24.63]Christine Lagarde as managing director. [02:28.07]Ms. Lagarde received support [02:30.96]from the United States and European nations [02:34.64]as well as Russia, Brazil and China. [02:38.72]Her five-year term starts Tuesday. [02:42.65]Dominique Strauss-Khan had to resign in May. [02:47.03]He is under house arrest in New York, [02:50.22]charged with sexually attacking [02:52.85]a hotel maid. [02:54.45]He denies the charges. [02:56.71]The international lender has always [03:00.29]been led by a European, [03:02.63]but Ms. Lagarde will be the first woman. [03:05.86]Ms. Lagarde has promised [03:08.31]to be a strong voice [03:10.30]for developing countries, [03:12.04]especially in Asia and Africa. [03:15.68]But international monetary expert [03:19.02]Domenico Lombardi says [03:21.03]being a European will also help. [03:24.28]DOMENICO LOMBARDI: "And one key factor [03:26.37]in guiding this decision [03:28.26]is certainly the ability [03:31.09]for Christine Lagarde [03:33.68]as a European coming [03:36.22]from a key euro area country [03:38.99]to exert pressure, [03:40.35]leverage on her European fellow [03:43.23]finance ministers in terms of [03:45.57]taking a more aggressive stance [03:46.97]on the European crisis." [03:48.96]And that's the VOA Special English [03:52.14]Economics Report. [03:53.83]I'm Steve Ember.