Greek PM wins key confidence vote

Greek prime minister George Papandreou survived a vital confidence vote in parliament tonight after garnering more than the absolute majority of 151 votes he needed in the 300-member legislature.

Mr Papandreou had called the vote to face down an internal party revolt and help him pass deeply disliked austerity measures that have provoked strikes, protests and a slump in his popularity.

The final tally showed that the premier won by 155 votes to 143, with two abstentions.

The vote was conducted by roll call after a heated debate that saw sections of the opposition briefly walk out.

A loss would have almost certainly led to early elections and thrown into question whether Greece could pass the new austerity bill by the end of June as demanded by the country’s international creditors.

Unless the new measures pass, Greece will not receive the next batch of funds from its bailout loans, and will face a disastrous default.

Greece is being kept financially afloat by a €110bn EU-IMF bailout fund.

A default by Greece could spark a financial maelstrom around the world, dragging down Greek and European banks as well as stoking renewed fears over the finances of other eurozone countries such as Portugal, Ireland and Spain.

Expectations that Mr Papandreou would win lifted world markets. His Socialist party holds a five-seat majority in the 300-member legislature.

Mr Papandreou reshuffled his Cabinet last week and replaced his finance minister to ease growing dissent within the governing party.

Today the new finance minister, Evangelos Venizelos, promised that parliament would pass the unpopular austerity package by the end of June in order to comply with European Union demands to receive the next payment in its bailout loan.

Mr Venizelos said parliament would vote on €28bn worth of budget cuts and other savings next week.

Outside, several thousand protesters chanted ``Thieves! thieves!'' and other anti-austerity slogans, shining green laser lights at the parliament building in Athens and into the eyes of riot police protecting it.

Expectations that Mr Papandreou would win lifted world markets earlier in the day.

Speaking during the debate before the vote, Mr Papandreou acknowledged the austerity measures were tough.

“At this time of pain I want to send a message to all Greeks,” he said. “Yes, the course is difficult but there is light at the end of the tunnel.”