Greece votes to stay in the euro - while protesters battle police

So finally it has been decided: Greece votes to stay in the euro - but at a humiliating cost, some say.

It has been reported that Prime Minister Alexis Tsipras had agreed to the harsh terms as part of an €86 billion bailout from Eurozone leaders.

The Greek parliament passed a raft of austerity measures to secure a three-year European bailout – despite the agreement coming two hours after the deadline. It means that other European parliaments can now vote on the plan, too.

In the meanwhile, violent protesters hurled petrol bombs at riot police (photo above) after surrounding the Greek parliament ahead of a final deadline for the country's €86 billion bailout deal.

Watch the video below of violence in Athens' streets:

Source | Photo

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Bank bailout alone will not save Spain

Amid the reports and denials about a bailout deal for Spain's banks, it is easy to lose sight of the nation's much larger problem which has yet to be addressed: The Spanish government's debt. The nation's regional governments owe a total of $175 billion and can no longer afford to borrow on the international bond markets.

Reuters is reporting that Madrid will request a European Union bailout on Saturday, while the BBC is reporting denials of this from officials across the EU. Whichever one of these is right, there is no doubt that most of Spain's banks are in desperate need of recapitalization.

The IMF is expected to release a report Monday saying they need $90 billion to recapitalize, $50 billion of which would have to be foreign aid. However, analysts at Fitch Ratings released a report yesterday saying that Spain needs $126 billion to recapitalize, roughly $86 billion of which would have to come from abroad. This is a huge increase from Fitch's previous total estimate of $37 billion

Read more: CBS News

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What is going to be the fate of Greece

Luxembourg Finance Minister Luc Frieden said it out loud: "If the Greek people or the Greek political elite do not apply all of these conditions ... they exclude themselves from the Eurozone." All of these conditions. And there are a lot of them. Then he added the crucial words: "The impact on other countries now will be less important than a year ago."

Greece might want to decide that it would be better to exit the Eurozone, rather than actually implementing the budget cuts, Friedan said. Returning to the drachma and devaluing it might create a more competitive economy. "It might be something which would allow Greece to get a new start," he said.

Read more: Business Insider

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Athens burn as Law Makers adopt a Severe Austerity Bill

Greek lawmakers on Monday approved harsh new austerity measures demanded by bailout creditors to save the debt-crippled nation from bankruptcy, after rioters in central Athens torched buildings, looted shops and clashed with riot police.

The historic vote paves the way for Greece's European partners and the International Monetary Fund to release $170 billion (euro130 billion) in new rescue loans, without which Greece would default on its debt mountain next month and likely leave the eurozone – a scenario that would further roil global markets.

Read more: Huffington Post

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