Euro and gold prices jump, as the Greek government wins vote of confidence. But the protests on the streets continues to go well into the night. Their course it also brings a glimmer of hope.
The Parliament in Athens, the government under Prime Minister Giorgos Papandreou expressed the confidence. For the Government voted on the night of Wednesday, all 155 deputies of the ruling Socialists. 143 MPs voted against. Two independent MPs were absent. This was announced by Parliament Speaker Filippos Petsalnikos.
So the government has taken the socialist Papandreou, the first hurdle to prevent the country from impending bankruptcy. Next week is facing a new test of strength for Papandreou. Then you have the austerity and privatization program be approved by parliament. An exact date for the vote next week is not fixed yet.
More than 20,000 people protest
After the backing of Parliament for a tougher austerity protests in Athens have been largely peaceful. Except for some young people left the more than 20,000 protesters in front of the House of Representatives, that there was no clashes with police.
Forces used tear gas early Wednesday morning, to distribute to a small group of young people who persevered. Reports of injuries or arrests were not immediately before. The course of the protests is a barometer of the chances of the government to bring the austerity program in the coming weeks through parliament.
EU Positive Reactions
EU Commission President Jose Manuel Barroso reacted with relief at the outcome of the issue of trust: “The Greek Parliament is an element of uncertainty in an already difficult situation has eliminated,” he praised. Papandreou can now fully concentrate on the planned reforms.
At the stores the first reactions were initially positive, there is avoided with the decision, a payment of €-state breakdown for now. The euro took a leap of joy at $1,442.1 but fell quickly back to his stand before the vote back at $1.440. The gold price rose by 80 cents to $1,547.30 an ounce and was able to secure his daily profits equally.
Was great optimism among market participants but not wide. The head of the world’s largest government bond dealers Pimco, Mohamed El-Erian said he expected during the debt crisis of defaults in Greece and other European countries. “Over the next three years we will see how different economies tackle various problems,” said El-Erian. European economies, particularly India, would not be able to avoid payment defaults. It is unlikely but not impossible, that a Greek-payment triggers a broader global financial crisis.
The chief investment by Allianz Global Investors Capital (AGIC), Horacio Valeiras fears that Ireland and Portugal were also dependent on a debt restructuring.