ATHENS, (Reuters) – Greek Prime Minister George Papandreou survived a parliamentary confidence vote yesterday, avoiding snap elections which would have torpedoed Greece’s debt crisis bailout deal and inflamed the euro zone’s economic crisis.
But the nation remained mired in political, social and economic turmoil and Papandreou signalled he would stand down, calling for a new coalition to ram the 130-billion-euro bailout deal through parliament and avoid the nation going bankrupt.
Papandreou’s socialist government won with 153 votes in the 300 member parliament, and a rebellion by some dissidents in his PASOK party failed to materialise after he indicated that his term as prime minister was close to an end.
“The last thing I care about is my post. I don’t care even if I am not re-elected. The time has come to make a new effort … I never thought of politics as a profession,” he told parliament before the vote.
Papandreou said the new coalition government should secure the approval of the euro zone bailout deal, the nation’s last financial lifeline, which is also the euro zone’s central plank to prevent economic crisis devastating the bloc’s bigger economies.
The leaders of France and Germany told Papandreou earlier this week that Greece would not get one more cent of EU aid if it failed to approve the bailout, meaning that the state would run out of money in December.
Papandreou told parliament that he would go to the Greek president on Saturday to discuss formation of a broader-based government that would secure the euro zone bailout, adding that he was willing to discuss who would head a new administration.
The meeting will take place at noon (1000 GMT).
NO RAPID ELECTIONS
Papandreou dismissed demands for rapid elections as championed by the opposition. “Elections at this moment not only equal disaster but could not take place in the best interest of the people,” he said.
“There is one solution. To support the (EU bailout) deal with a multiparty approach, without elections, with a strong government.”
Greece has been racked by torment since soon after Papandreou won power in 2009 and revealed that the real budget deficit was three times bigger than original estimates put out by his conservative predecessor.
International investors took fright, Greece’s borrowing costs soared and Papandreou was forced to go cap in hand last year to the only bodies still wiling to lend at affordable rates — the European Union and IMF.
In return they demanded wave after wave of spending cuts, tax rises and pension cuts which provoked widespread protests on the streets on Greek cities, with bloody clashes between demonstrators and riot police in Athens.