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Greek PM receives vote of confidence.

The Greek Prime Minister has had a reprieve after his new cabinet was voted in, according to a report by the BBC.

George Papandreou’s new cabinet will now be make decisions on 28bn euros (£25 bn) of tax rises, reforms, privatisations and cuts, in the latest series of austerity measures to save the country’s economy.

However, many Greek people have expressed their outrage over the new measures, with some reported to be chanting ‘thieves’ outside parliament buildings in Athens.

Papandreou defended his actions and urged Greece not to despair at its fiscal problems, but an opposition minister criticised his programme for its “pillage before bankruptcy.”

On the 3 July, finance ministers from throughout the Eurozone will meet to discuss a Greek bailout package of 110 billion Euros worth of debt.

There is hope that this loan will make Greek debt more sustainable and will make the government’s debt more sustainable by reducing its borrowing needs.

However, when this money is given to the government alongside their own tax cuts, it seems it will become even more difficult to generate economic growth.

This was posted in Bdaily's Members' News section by Ruth Mitchell .