Greece: A ticking budget bomb

ATHENS, Greece - Greece's euro partners won't be able to release the country's next batch of bailout cash next week, even though the Greek Parliament narrowly backed more unpopular austerity measures Thursday.

Germany's finance minister, Wolfgang Schaeuble, said the 17-country eurozone is not yet in a position to make a decision on releasing the funds, as many in Athens may have hoped. As anticipated, the cash-strapped country still has to pass its budget for 2013, while lawmakers in some countries, including Germany, have to authorize the release of funds.

"We're not there yet," Schaeuble said in Hamburg.

The approval of the austerity bill, which will further cut salaries and pensions and increase taxes, was the key step toward persuading Greece's international creditors to release the next 31.5 billion-euro ($40.2 billion) installment of the country's vital bailout loans.

Without it, the government has said the country will start running out of cash on Nov. 16, paving the way to Greece's potential bankruptcy and exit from the euro. That scenario has kept financial markets on edge for the past three years.

However, Germany, the biggest single contributor to Europe's bailouts, has insisted that Greece must first pass its 2013 budget to create the basis on which the country's creditors can make a decision to release the new funds.

After the budget vote, which is scheduled for Sunday, the release of the funds still hinges on a report by the so-called troika of debt inspectors from the European Union, International Monetary Fund, and European Central Bank, which is not expected to be ready in time for the Monday meeting.

In addition, some euro countries such as Germany can give the go-ahead only after their own parliaments have voted on it. Though those votes are not expected to take much time, they add the prospect of further delay.

Schaeuble's comments strongly suggest that an interim financial arrangement for Greece may have to be agreed.

Sunday's budget vote in Athens represents another test to the coalition government of Antonis Samaras. Thursday's vote in favor of the 13.5 billion euro austerity package came at a cost for the fragile three-party coalition government.

Lawmakers voted 153-128 for the package, hours after more than 80,000 protesters demonstrated outside in Athens - some fighting running battles with riot police.

Greece has relied on rescue loans from its euro partners and the IMF since 2010. In return, it has had to implement a series of austerity measures which have hit the economy hard. Greece is set to enter its sixth straight year of recession.