June 19, 2011
Greece will need a second international financial bailout of the same magnitude as last year's €110bn (£97bn), in order to avoid a tumultuous debt default, the prime minister, George Papandreou, has conceded while mounting a last-ditch appeal to parliament and the nation to back his austerity programme.
Appealing for a vote of confidence in his newly reshuffled government, the Socialist party leader warned that, without further aid from the EU and IMF, Athens's cash reserves would soon run out, inviting a financial crisis that European officials have warned would rapidly contaminate the international financial system.
"I ask for a vote of confidence because we are at a critical juncture," said Papandreou in a speech opening a marathon parliamentary debate which will culminate with the crucial vote on Tuesday.
The sacrifices required for that aid – more cost-cutting, tax increases and job losses, plus massive privatisations – were infinitely better than a default, he said, as thousands of austerity-weary Greeks protested outside the 300-seat parliament.
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