George Papandreou narrowly survived a crucial confidence vote to save his government
The Greek prime minister has survived a crucial confidence vote held early Wednesday, keeping alive a government dedicated to averting a debt default that many fear will spark a financial meltdown across the globe.
Lawmakers voted 155 to 143 along party lines to back Prime Minister George Papandreou, who will now face a critical vote next week on a massive austerity package that Greece's international creditors have said must pass by the end of June.
He is seeking €28 billion ($40.24 billion) in budget cuts and new taxes and €50 billion worth of privatization of public assets.
Unless the new measures pass, Greece will not receive the next batch of bailout funds, worth €12 billion, and will face a disastrous default in July, when it runs out of money.
A default by Greece could drag down Greek and European banks and renew fears over the finances of other eurozone countries such as Portugal, Ireland and Spain.
Papandreou still has the unenviable task of convincing all the lawmakers from his Socialist party to support the austerity bill, which has provoked strikes, riots and a slump in his popularity.
While all 155 Socialists voted in favor of the confidence motion, several have publicly criticized the austerity measures and at least one has said he will not back them.
After the vote, riot police fired tear gas and stun grenades to push back a group of about 200 protesters who had broken off from a main rally of several thousand to throw bottles and other objects at the police lines guarding Parliament.
"We will do everything in our power to end the state of insecurity Greek families face and exit this crisis in a safe way. We have a plan, we have prospects," Papandreou said during a debate before his victory.
"Regardless of the panic caused by some, we are on an organized course, helped by the international community with massive loans -- the largest every given in the history of our planet."
Papandreou's government came to the brink of collapse last week as protesters rioted on the streets of Athens, two party rebels resigned their parliamentary seats and talks with the opposition conservatives over forming a pro-austerity coalition government fell apart.
In response, he reshuffled his Cabinet, replaced his increasingly unpopular finance minister with a party heavyweight -- his main internal rival -- and called for the confidence vote.
© 7Days 2011
