Tuesday, June 21, 2011

New Hurdle Is Placed for Loan to Greece

New York Times
June 20, 2011

Pressure rose on Greece on Monday after a surprise decision by euro zone finance ministers to delay a loan payment until the troubled Greek government secures a confidence vote from Parliament.

The Socialist prime minister, George Papandreou, requested the confidence vote last week after a cabinet shuffle aimed at shoring up internal support as he works to push through measures demanded by foreign lenders before they release the next aid package. The confidence vote is scheduled for Tuesday evening and is to be followed by a vote on the new measures in Parliament next Tuesday.

Those measures — which include tax increases, wage cuts and the privatization of about $70 billion in state assets — have met howling popular resistance. Power company workers started rolling blackouts on Monday and unions called a 48-hour general strike for next week after protests last week, some of them violent.

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