Global Economy, 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.

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

The Italian austerity budget worth nearly 48 billion euros was approved by the upper house of parliament on Thursday, overcoming its first parliamentary hurdle.

Spain's governing Socialists won approval for a 15 billion euro ($18.4 billion) austerity package by just one vote on Thursday, avoiding a defeat that would have rattled markets and potentially brought down the government.