Greek legislatures allow austerity plan

The Greek parliament on Wednesday voted in favour of austerity measures. This paves the way for the international lenders to starve off default. At the end of the voting this was called by the socialist prime minister of Greece George Papandreou, the proponents of the austerity won by a simple majority vote of 155 to 138 votes. The issue of austerity measure was a contentious issue in the country.

Stock market had started reacting positively to the development. Earlier in the day stock markets have started rallying in anticipation that the Greek parliament will approve the austerity plan. After the approval has been made the stock markets started to rally higher both in Europe and Asia. This development was a big relief to the international community because if the measure had failed it would have caused negative ripple effects to the international financial system.

Before the voting started there was a sharp disagreement between the prime minister and the leader of the opposition party Mr. Samaras; the opposition leader accusing the prime minister of letting the country down. The prime minister had blamed the opposition political party for the problem of the economy saying the problem started when the opposition party was in government. He also blamed the European Union for the problem of the country for their inability to call the previous government in the country to order when they were presenting inaccurate data.