With today’s vote in favour of a medium term fiscal plan, Greece has just escaped the immediate danger of financial collapse. But this will prove a shortlived victory for the Greek government. Greek Prime Minister George Papandreou’s problems begin again tomorrow, with a second parliamentary vote on the implementation of the plan barely agreed today.
Public fury against the government is unlikely to abate. Greece’s bureaucracy inspires little confidence that it’s up to this job. Today’s vote has bought the government several months, but by the end of the year, Greece will probably have new elections. And this is where the real problems begin. Continue reading »