Greek PM faces confidence vote

| June 21, 2011
”Greek

Later today, Greece’s Prime Minister, George Papandreou, faces a confidence vote after the crisis-torn country needs to introduce further austerity measures in order to avoid the euro zone’s first sovereign debt default.

EU leaders are insistent that the PM secure support for the measures that are a condition of the latest instalment of financial aid.

If the cabinet survives the vote, parliament will be asked to support the latest austerity measures at the end of this month.

The tough measures have to be introduced before the EU and the International Monetary Fund (IMF) will provided the latest loan instalment.

EU and inspectors from the IMF have arrived in Athens to discuss a second bailout package of around €120 billion after the original loan has proved insufficient.

However, a further loan would be regarded as a default, according to credit rating agency, Fitch, and would lead to a default rating to Greece and a further lowering of the country’s credit rating.

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