A crucial vote of confidence on Papandreou’s new ministerial lineup
He added that approval of the austerity measures would also pave herve leger red dress the way for a second rescue package for Greece, which has so far failed to meet its deficit-reduction targets while facing a mountain of public debt. The Greek economy is on course for a painful contraction this year, heightening concerns about the government’s ability to pay back its loans and put the economy on a more competitive footing.
International markets have been rattled for more than a year over the debt crisis in Greece and the mounting woes of Ireland and Portugal, two other Eurozone countries that have had to seek emergency bailouts from the European Union and the International Monetary Fund.
All eyes are now on Athens, where violent public demonstrations and a revolt brewing in Prime Minister George Papandreou’s ruling Socialist party have thrown the fate of his proposed austerity measures into doubt.
Last week, the beleaguered leader was forced to reshuffle his Cabinet in an effort to shore up support herve leger clothes for the austerity program, which would raise taxes, make deep cuts in public spending and sell off state assets to help balance the books. On Monday, lawmakers hotly debated the package in Parliament as thousands of protesters packed the plaza outside.
A crucial vote of confidence on Papandreou’s new ministerial lineup is expected Tuesday, which could determine whether his government stands or falls.
Analysts say he is likely to eke out a win, which would smooth passage of the austerity package. But the volatility of the situation makes the outcome impossible to predict with certainty.
If he fails, and if Athens cannot pay its bills next month, ratings agencies will declare Greece to be in default, a step that could set off a global financial earthquake.
“The political time has been compressed a lot. Each day is of extreme importance and hence we cannot afford to waste a single hour,” said Evangelos Venizelos, Papandreou’s new finance minister.
The crisis in Greece has been exacerbated by disagreements among fellow Eurozone members over the best way to handle the situation. Although they largely agree now on the need for a second bailout, there has been deep discord over whether private creditors should shoulder some of the burden.
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