After long hours of waiting and speculation, the Greek parliament finally rose to the task and eased the woes slightly with their vote of confidence to back George Papandreou's new Cabinet.
After Papandreou called for the confidence vote and the motion has been in parliament since Sunday June 19, the final verdict was finally out in a midnight vote on Tuesday granting confidence to the new government and adding more pressure on them to actually enact the austerity measures and pass the new five-year hated austerity package.
The motion passed with 155 lawmakers support in the 300-seat parliament and 143 voted with nay.
We already saw the market moving with a sigh of relief since early Tuesday on the expected confidence to be granted, and as we expected the relief rally did not last, as the greatest test of confidence in Papandreou by the troika is the ability for the battered Premier to pass the austerity measures.
The July tranche of 12 billion euros need more commitment from Greece and more measures to be passed and the confidence vote from the Parliament is only step one, as surely the measures are the ones needed now or else the confidence will not prevent Greece from being insolvent next month!
We can see the market still jittery on the prospect, and surely the negativity slightly eased as the battered government survived the crucial vote, yet the austerity measures are still needed and that is keeping the pressure on the euro. The parliament is now due to vote at the end of June, so far on June 28, on the austerity package and that is the critical vote needed.