Greece PM Papandreou Wins Vote of Confidence

From the Bloomberg,

Prime Minister George Papandreou won a confidence vote after offering to form a government of national unity that may lead to him stepping down as he sought to reach an accord on European aid needed to avert default.

The premier said he’ll meet with President Karolos Papoulias to discuss his proposal to create a unity government. Main opposition leader Antonis Samaras rejected the offer and called for elections.

“I ask for a vote of confidence tonight so that we can secure the course of this country,” Papandreou said. “I have already communicated with the president of the republic to inform him that I intend to proceed with consultations for a government of cooperation.”

Papandreou’s offer caps a tumultuous week that started with him securing a second bailout from the European Union then roiling markets by unilaterally deciding to put the terms of that rescue to the Greek people in a vote. The premier must heal political divisions to secure agreement on the aid package before Greece runs out of funds next month.

PM Papandreou’s win on a slim margin (153 to 145) only shows how divisive Greek politics has been. The offer by the PM for a conciliatory gesture to ‘step down’ could have been a mawkish bait to garner votes.

And the formation of a ‘Unity government’ whatever that means will likely remain elusive, as the Greece political class seem to have different interests. Nevertheless their common interest is to maintain their privilege of free lunches, the only problem is who and how will these be financed.

The political maneuverings and the bizarre twists manifests of the ongoing political circus in Greece.

I doubt if this political smoke and mirror act will prevent Greece from a default. Yet like almost every political act, this has been meant to buy time.