Greek government survives vote as protesters chant insults

Greece's embattled government survived a confidence vote on Wednesday that was crucial to avoiding a sovereign default, as thousands of protesters chanted insults outside parliament.

The assembly voted confidence in the government, reshuffled by Prime Minister George Papandreou to stiffen resolve behind a painful new austerity program, by 155 votes to 143 with two abstentions.

All Papandreou's Socialist Party deputies voted solidly with the government.

"If we are afraid, if we throw away this opportunity, then history will judge us very harshly," Papandreou said in a final appeal for support before the vote.

Protesters besieged the parliament, chanting slogans against the politicians, shining hundreds of green laser lights at the building and into the eyes of riot police outside and pushing their hands forward in a traditional insult. They held up a mock gallows with several nooses.

The successful vote, closely watched outside Greece, had an immediate impact with the euro making gains, although traders said continuing concerns about implementation of the measures contained the rise.

European Commission President Manuel Barroso expressed immediate relief. "Tonight's vote in the Greek Parliament removes an element of uncertainty from an already very difficult situation," he said, adding that Papandreou could now concentrate on implementing the reforms.

"Although this clearly is not going to be a long-term fix, investors see this as a chance that the can will be kicked further down the road and so I think we are going to see tomorrow a world-wide push to risk assets," said David Dietze, Chief Investment strategist at Point View Financial Services.

Papandreou's government must rapidly pass two more tests -- enacting the austerity plan and the laws needed to implement it -- to win a new bailout to avert the euro zone's first sovereign default and possible global economic disaster.