Post by dait on Nov 16, 2011 20:51:10 GMT -5
Greece's new coalition government, led by Prime Minister Lucas Papademos, has won a parliamentary vote of confidence as expected. The 300-member parliament endorsed by 255 votes a national unity government that unites bitter rivals from the Socialist party of fallen premier George Papandreou, the conservative New Democracy and the far-right LAOS party.
But, in a sign of tensions ahead, New Democracy leader Antonis Samaras again refused to provide the written guarantee sought by Brussels to meet the terms of Greece's latest bailout worth €130bn - a stance sure to rile creditors.
Mr Papademos reiterated that party leaders must sign a letter committing to the terms of the new EU-IMF bailout, which is something the centre right party has refused to do. "Dealing with Greece's problems will be more difficult if Greece is not a member of the euro zone," Mr Papademos, a former vice president of the European Central Bank, told parliament in a final appeal for support ahead of the vote. "I'm certain that we will make it if we are united."
The problems facing Greece were underscored by data released today that showed its austerity-fuelled recession had driven the budget deficit wider in October, the government failing to boost revenues despite a batch of unpopular new taxes.
Mr Samaras repeated his demand for pro-growth policies to revive an economy shattered by four years of recession and reaffirmed his refusal to sign the pledge demanded by the European Commission, which fears Greek backsliding on reforms.
"If there is something that we all agree on, of course we will vote for it. But we are making clear we won't approve anything we disagree with," Mr Samaras told parliament. The bailout deal commits the government to fight rampant tax evasion, sell off state companies and cut a famously bloated public sector.
Both the Socialist PASOK and New Democracy have a tentative agreement to hold an early election on 19 February and Samaras made clear on Wednesday he saw the Papademos administration as a necessary but temporary stopgap. "Those who try to prolong the mandate and role (of this government) ... undermine this government, they do not help it. Those who try to avoid elections by the end of the (first) quarter do not help the new prime minister," he said.
However, George Karatzaferis, leader of the coalition's far right LAOS party, disagreed, telling Reuters in an interview he saw no need for an early election if the government proved successful