Uncertainty remains after Greece passes austerity measures

There was widespread relief in Europe and across the global markets after Greece voted through a £25 billion austerity programme on Wednesday.

The vote frees up the next £10.7 billion payment from the European Union and International Monetary Fund, crucial to saving the euro and helping Greece avert bankruptcy come mid-July.

The package of spending cuts and tax hikes was necessary to secure the next instalment of the EU-IMF loan but has gone down badly with Greeks.

There were boos from the thousands of protesters who gathered outside the Greek Parliament yesterday and rioting lasted well into the night.

Whilst the five-year package may have staved off an immediate default, there are grave concerns that it will not be enough to save Greece’s economy or the euro in the long-run.

“The Greek government has voted 'yes' to an eye-watering €28 billion of austerity measures, which it will almost be impossible to implement,” said Aidan Vaughan, Chairman of the Association of Christian Financial Advisers.

“However, it does keep the €110 billion rescue package flowing from Brussels - the Eurozone breathes again.

“Whilst immediate default has been averted and stock markets have responded positively to the news we are surely seeing yet another scene in a Greek tragedy.”

The budget-cutting package was passed in parliament yesterday by 155 votes to 138.

Europe’s finance ministers will meet again on Sunday in Brussels to work out the details of the next bailout payment.

Greece is hoping it will be made before July 15, when it expects to run out of cash.

An EU-IMF bailout of €110 billion saved Greece from a default last year but now the country says it needs another €100 billion to steer it through 2014.