Greek Prime Minister George Papandreou faces a crucial parliamentary vote of confidence in the new cabinet he formed to face down increasing opposition to austerity measures needed to avoid a national debt default.
A default by Greece, where the country finds itself unable to pay back its debts, could spark a financial maelstrom around the world, dragging down Greek and European banks as well as stoking renewed fears over the public finances of other euro countries, such as Portugal, Ireland and Spain.
If Papandreou's new government fails to get the necessary Parliamentary support in a midnight vote Tuesday, it would throw into question whether it can pass a critical new austerity bill by the end of the month. Without parliamentary approval for the new measures, Greece will not get the next installment of its bailout — funds the country needs to avoid default.
AP
