EU Warns Greece ' No Austerity Means Default'

ATHENS/BRUSSELS — The European Union warned Greek lawmakers on Tuesday their country faced immediate default unless they approve a hated austerity plan, as strikers began new mass protests against the EU/IMF-imposed measures.

With the Greek parliament debating a raft of spending cuts, tax rises and privatizations, the EU's top economic official, Olli Rehn, dismissed reports that Brussels was working on fallback options to keep Greece afloat if the plan was rejected.

"The only way to avoid immediate default is for parliament to endorse the revised economic program ... They must be approved if the next tranche of financial assistance is to be released," he said in a statement.

"To those who speculate about other options, let me say this clearly: there is no Plan B to avoid default," Rehn said.

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