Europe faltered in its race to save Greece from default asfinance chiefs said further aid hinged on embattled Prime MinisterGeorge Papandreou delivering budget cuts in the face of domesticopposition.

On the eve of a confidence vote that threatens to topplePapandreou, the euro area's top economic policy makers pushedGreece to pass laws to cut the deficit and sell state assets. Theyleft open whether the country will get the full 12 billion euros($17.1 billion) promised for July as part of last year's 110billion-euro lifeline.

“The Greeks have to bring to Parliament their austerity measuresand their privatization package and they have to implement thosemeasures,” Luxembourg Finance Minister Luc Frieden told BloombergTelevision as a euro crisis meeting in Luxembourg went into asecond day. “Only if those conditions are fulfilled, we can pay outthe next tranche and at the same time look for a possible secondprogram to support Greece.”

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