In Confidence Vote, Greek Government Lives to Fight Another Day

Prime Minister George Papandreou survived a confidence vote

Greek Prime Minister George Papandreou and his reshuffled cabinet survived a late-night vote of confidence in parliament on Tuesday, according to CNBC, but that should bring Papandreou and his Socialist government only a momentary sigh of relief. As the BBC points out, parliament must still approve an unpopular $40 billion austerity package of budget cuts, tax increases, fiscal reforms, and privatization plans by the end of month. If the package isn't passed, Greece won't be able to receive the last installment of an I.M.F. and E.U. loan it needs to stave off bankruptcy. While global markets rallied today on the hopes that the confidence vote would pass, CNBC adds, if Greek can't secure international financing and defaults it could cause a "domino effect" in other European countries like Spain.