Papandreou survives confidence vote
from 155 to 143 and he must now try to impose unpopular austerity measures
Greecebeleaguered prime minister survived the first of a trio of tests that could sink the Greek economy and lay waste to the single European currency by winning a confidence vote in Parliament in their government remodeled. George Papandreou must now try to drive through a pack of wild spending cuts and the sale of household goods in order to obtain a new bailout of the EU.
With the complex effort to prevent a Greek sovereign default to a climax and anti-government and anti-EU protesters besieged the center of Athens, Papandreou won a vote of 155 to 143 in 300-seat chamber. Brussels and other EU capitals anxiously watched the drama in Athens before a crucial summit of EU leaders.
"Good news for Greece and the EU as a whole," said José Manuel Barroso, President of the European Commission. Papandreou's victory eliminates "an element of uncertainty from an already very difficult. The government can now focus all efforts on building support in Parliament for the ambitious package of tax measures and privatization. "
vote began three crucial weeks that could make or break the euro. Leaders in Brussels, spoke about the worst crisis in Europe since World War II, the International Monetary Fund (IMF) an ultimatum set by 17 single currency countries, and international rating agencies rank the terms of bailout for Greece as a defect likely.
To provide a lifeline of ? 12000000000 EU immediately and agree on a rescue plan for the second time in more than 100 billion ? in three years, Mr. Papandreou now persuade the Parliament to support a radical program of spending cuts, tax increases, and the assets of the estate recovered at the end of next week.
It must be done in an electric atmosphere with Greeks from all walks of life converge at Syntagma Square. Furiously punching the air as the political debate in difficult conditions of the poor economic situation, the protesters shouted "We give a vote of confidence." Riot police watched and tensions have increased, most Demonstrators threw bottles of water in the Parliament.
"In this country, we take seriously our democracy," said Ioanna Deloudi, one of thousands of demonstrators. "And we will protest until they are blue in the face because they are to blame for the debt that has accumulated.
"Doing the little man in the street, the source of low-income wage income to support the austerity, not to resolve this crisis, when not so long ago that did not even know the problem exists because no politician ever spoken, is totally unfair. "
- Some of the protesters had traveled from as far as Sparta, the historic city in southern Peloponnese, to make their voices heard. "This is our dignity as a nation," said Kalli Kyriakopoulou. "Every week we hear of another court, when there is no guarantee that one of them is out of Greece hole of debt. Now they want to privatize everything, sell the riches of our nation, our monuments, our islands, our land, solve the problem. What country would agree with that? "
- If Greece does not agree austerity measures, the IMF will pull the plug on the last leg of ? 12000000000 bailout of its current ? 110 000. Greece is insolvent, with huge implications for European banks and the fate of the single currency.
- Before the victory for the government, however, the prevailing expectation Papandreou raised the stock markets around the world. London FTSE 100 closed 81.92 points higher at 5775.31 and the FTSEurofirst 300 index of leading shares was up 1.5%, its biggest increase in two months. The Dow Jones Industrial Average was up more than 100 points at midday in New York.
"We are at a critical point in the worst crisis since the Second World War," said Olli Rehn, European Commissioner for Monetary Affairs.
A group of 15 public figures, including six former ministers of the EU on the first, sent a message of pessimism to European leaders, warning that the EU faces a future international framework. "Europe is a good place these days," said the group, all partners with the Friends of Europe think tank in Brussels. "The trend towards greater integration is stalled and is in great danger of falling ... European leaders the EU in danger of becoming a marginal player in a globalized world where rapid change is evident that the benefit of Europe. "
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