Greece, Austerity Package | featured news

Greece's new prime minister, Lucas Papademos, won a crucial confidence vote Wednesday on severe austerity measures to be made in exchange for more bailout funds to help the country step back from the brink of bankruptcy.

Greece will miss a deficit target set just months ago in a massive bailout package, according to government draft budget figures released on Sunday, showing that drastic steps taken to avert bankruptcy may not be enough.

Greeks expressed their misery on Monday at the erosion of their daily lives by austerity measures demanded by international lenders in exchange for bailout funds, ahead of a key parliamentary vote on extra property tax.

Thousands of protesters and an equal number of police fanned out in several Greek cities Saturday evening ahead of an expected announcement by the country's prime minister that additional austerity measures are on the way.

Italy and Spain pass new measures as they battle to control their debts while Greece steps up its austerity plans.

Under the plan, French banks would give Athens more time to pay back loans as they come due over the next three years.

Greek Prime Minister George Papandreou sacrificed his finance minister on Friday and put his main socialist party rival into the job in a bid to force through an unpopular austerity plan and avert bankruptcy.