New Riots Erupt In Greece (PHOTOS, VIDEO)

New Riots Erupt In Greece (PHOTOS, VIDEO)

(AP) ATHENS, Greece - Greek police fired tear gas to repel stone-throwing protesters after lawmakers approved drastic austerity cuts Thursday needed to secure international rescue loans worth euro110 billion ($140 billion).

In New York, Dow Jones industrials plunged almost 1,000 points before recovering to a loss of 505 as investors succumbed to fears that Greece's debt problems would halt the global economic recovery. Traders watched protests in the streets of Athens on TV.

The new clashes came a day after violent protests left three people dead after a bank was firebombed.

Greek lawmakers voted 172-121 to approve the austerity measures -- worth about euro30 billion ($38.18 billion) through 2012 -- that will slash pensions and civil servants' pay and further hike consumer taxes.

The rescue loans are aimed at containing the debt crisis and keeping Greece's troubles from spreading to other countries with vulnerable state finances such as Portugal and Spain. The money will come from the International Monetary Fund and the 15 other governments whose countries use the euro.

Clashes in Athens broke out at the end of a main protest that drew tens of thousands of people as police pushed back a few thousand demonstrators outside parliament.

The violence was quickly contained with riot police firing tear gas at the protesters, who had earlier pelted them with stone, oranges and bottles. Several small fires burned in surrounding streets. No injuries or arrests were reported.

Demonstrators banging drums and shouting anti-government slogans through bullhorns, unfurled a giant black banner outside parliament earlier Thursday. More than 30,000 demonstrators filled downtown streets, chanting "They declared war. Now fight back."

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