Papandreou Wins Vote of Confidence

The Greek parliament has voted favorably on a motion of confidence for the government of George Papandreou, Reuters reports.

This is a key step towards the implementation of more austerity measures in exchange for Greece receiving the next tranche of a crucial loan (12-billion euros) from the European Union and International Monetary Fund.

But now comes the hard part.

On June 28, the parliament will reconvene to vote on an austerity budget calling for 28-billion euros in spending cuts, including more public sector job cuts, pay freezes, social spending reductions, the sale of state-owned assets among other items.

Given the ferocious opposition to the austerity program from many politicians and thousands of protesters, it will likely b very difficult to pass.