Athens Takes a Pill And Euro Stays Ill

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Athens's narrow vote for austerity Wednesday brings the curtain down on another act in the drama of Greece's tottering economy. But sadly for those betting on a euro bounce, there are more harrowing episodes to come.

Rejection of the government's proposed budget would have raised the specter of a disorderly default on Greek bonds because the country remains effectively shut out of international debt markets. Its continued funding by the European Union and International Monetary Fund is contingent on Athens exercising the sort of iron-clad fiscal restraint it has been so poor at in the past.

However, even as the markets sighed with relief that default has been avoided, they readied themselves for another vote as soon as Thursday. This vote, on the budget's implementation, is likely to see more violent protests on the streets of Athens, placing further pressure on lawmakers and the euro itself.

The market certainly wasn't buying the so-called positive news late Wednesday. The common currency failed to hold on to gains against the dollar, falling to $1.4419 Wednesday afternoon in New York, from the day's high of $1.4445 just before the vote, which came in the middle of the European afternoon.

The euro had climbed a touch higher before the vote, initially buoyed by the news that the budget would garner enough support to pass through Parliament.

Analysts say there are many more roadblocks to maneuver past before Greece is even close to in the clear. Putting the prospect of another Parliamentary vote to one side, European officials have yet to decide on additional aid for Greece, in the form of a successor to the

WKN

本来就是“带了两个mm”的尴尬境地