ATHENS (AFP) — The Greek parliament early Monday adopted its government's budget for 2009, with a projected deficit of two percent and growth estimated at 2.7 percent of GDP.
The vote by the single-chamber parliament came after a five-day debate overshadowed by protests and violence sparked by a boy's fatal shooting by police this month.
The conservatives of Prime Minister Costas Karamanlis secured the budget's approval despite their razor-thin parliamentary majority, which rests on a single lawmaker in the 300-seat house, and amid strong opposition by the left and far-right.
Voting could not have been tighter, with the 151 ruling party deputies in favour and the socialist, communist and far-right voting against.
"We are at a difficult time, as with all of Europe," said Karamanlis as he closed the debate, calling on all parties to show "political maturity, unity and responsibility."
Karamanlis accused opposition socialist leader Georges Papandreou of showing "indifference in the face of the current (high) stakes."
Papandreou said the conservatives were "incapable" of managing the domestic impact of the international economic downturn, and renewed his call for fresh elections.
"Greece needs a different government with a strong majority to extricate itself from the crisis of institutions and values, which is currently hitting its economy and society," he stated.
The budget makes provisions for a two-percent deficit and 2.7-percent growth -- down from the current 3.0 percent.
It also forecasts an inflation rate of 3.0 percent, unemployment of 7.5 percent, a rise of 9.1 percent on public spending to 65.9 billion euros (91.7 billion dollars) and a national debt making up 91.4 percent of gross domestic product.
Unions and opposition parties have rejected the budget as "anti-popular."
Greece had already revised its growth forecast from an estimate of 3.0 percent in November's draft budget because of the global financial slowdown.
But Karamanlis last week warned that the unrest over 15-year-old Alexis Grigoropoulos's death troubled investors and complicates efforts to reduce Greece's national debt, which this year stands at 93.1 percent of GDP, one of the highest in Europe.
The conservative leader said last week that Greece expects to pay about 12 billion euros in 2009 to service its debt, amounting to over 19 percent of its revenue and nearly five percent of GDP.
Hundreds of shops and banks in Athens and other cities suffered damage in the initial wave of anger, vandalism and looting that followed the death of Grigoropoulos, and the government has pledged to help stricken businesses.
The prime minister has refused to resign but is widely reported to be considering a sweeping government reshuffle which could see the replacement of Finance Minister George Alogoskoufis.
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