Reuters
November 5, 2011
Greek Prime Minister George Papandreou won a parliamentary confidence vote on Saturday, avoiding snap elections which would have torpedoed Greece's bailout deal and inflamed the euro zone's economic crisis.
COMMENTS:
ENRIQUE ALVAREZ, LATIN AMERICA STRATEGIST AT IDEAGLOBAL, NEW YORK
"It looks like they are going to put together a unity government. Whoever takes the front in the unity government is still going to pursue the bailout package. I don't think that is going to change very much.
"Before the referendum you had very split opinions as to what course to pursue, but I think that has changed now and most of the Greek political parties are very aware and fearful of unplugging the plug on the euro membership.
"So I think that, looking forward, that unity government is going to go on course and going to try to apply the recipes that were prescribed for the second bailout.
"Now the ball is off to Italy. The problem is not going to be Greece, the problem will be Italy because Italian rates at the 10-year level have been above 6 percent. That's where the market focus has migrated to already and that's where the real risk is now."
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