Los Angeles Times
June 21, 2011
Greek Prime Minister George Papandreou survived a crucial confidence vote, winning his gamble on the fate of his government and helping him contain a debt crisis that has rattled international markets and imperils Europe's single currency.
Papandreou was backed by all 155 of his Socialist party lawmakers in the 300-seat Parliament. Two opposition deputies abstained, and 143 voted against the government.
If Papandreou had failed to win the midnight Tuesday vote, it would have forced him to resign, pushing Greece into a messy restructuring of its $485-billion debt or an outright default — a first within the club of 17 nations that share the euro currency.
U.S. stocks rallied and the euro strengthened as analysts watched Greece take action to avert default. Analysts remained cautious, however.
"Greek politics remain the main risk," said a recent report from Nomura International, which put at 70% the probability of Papandreou's government winning the confidence vote and passing a controversial austerity bill a week later.
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