PM wins vote, Greece still faces uncertainty

George Papandreou

ATHENS,  (Reuters) – Greek Prime Minister George  Papandreou survived a parliamentary confidence vote yesterday,  avoiding snap elections which would have torpedoed Greece’s debt  crisis bailout deal and inflamed the euro zone’s economic  crisis.

But the nation remained mired in political, social and  economic turmoil and Papandreou signalled he would stand down,   calling for a new coalition to ram the 130-billion-euro bailout  deal through parliament and avoid the nation going bankrupt.

Papandreou’s socialist government won with 153 votes in the  300 member parliament, and a rebellion by some dissidents in his  PASOK party failed to materialise after he indicated that his  term as prime minister was close to an end.

“The last thing I care about is my post. I don’t care even  if I am not re-elected. The time has come to make a new effort  … I never thought of politics as a profession,” he told  parliament before the vote.

George Papandreou

Papandreou said the new coalition government should secure  the approval of the euro zone bailout deal, the nation’s last  financial lifeline, which is also the euro zone’s central plank  to prevent economic crisis devastating the bloc’s bigger  economies.

The leaders of France and Germany told Papandreou earlier  this week that Greece would not get one more cent of EU aid if  it failed to approve the bailout, meaning that the state would  run out of money in December.
Papandreou told parliament that he would go to the Greek  president on Saturday to discuss formation of a broader-based  government that would secure the euro zone bailout, adding that  he was willing to discuss who would head a new administration.

The meeting will take place at noon (1000 GMT).

NO RAPID ELECTIONS   
Papandreou dismissed demands for rapid elections as  championed by the opposition. “Elections at this moment not only  equal disaster but could not take place in the best interest of  the people,” he said.

“There is one solution. To support the (EU bailout) deal  with a multiparty approach, without elections, with a strong  government.”

Greece has been racked by torment since soon after  Papandreou won power in 2009 and revealed that the real budget  deficit was three times bigger than original estimates put out  by his conservative predecessor.

International investors took fright, Greece’s borrowing  costs soared and Papandreou was forced to go cap in hand last  year to the only bodies still wiling to lend at affordable rates  — the European Union and IMF.

In return they demanded wave after wave of spending cuts,  tax rises and pension cuts which provoked widespread protests on  the streets on Greek cities, with bloody clashes between  demonstrators and riot police in Athens.