Greece will not have a snap election, the office of the Greek Prime Minister, George Papandreou told CNBC Wednesday in response to market speculation that affected the euro late Tuesday.
The Spanish socialist government, which is also enforcing austerity measures, got a bloody nose from voters in local elections on Monday.
The Irish government , which agreed to an 85 billion euros ($119 billion) bailout package late last year, was swiftly kicked out of power.
The Greek people are unlikely to be more forgiving and the main public sector union is planning a one-day strike next month to protest against the cuts in the austerity package, while the main opposition party has expressed concern at the speed of privatization in Greece.
The Greek government signed off another package of spending cuts and state asset sales Monday after the worsening bond market selloff across the euro zone forced it to step up its austerity measures.
It announced that it was planning to sell stakes in Hellenic Telecommunications Organization, Postbank and a number of other companies, after tax receipts were lower than expected.
The government will be forced to privatise as much as 15 billion euros worth of assets in the next couple of years under harsh European Union plans to tackle Greece’s budget deficit.
Fears that the country will need more help managing its debts beyond last year’s emergency loan package are intensifying in the market. Last week, Fitch downgraded Greece's debt further into junk status.
Ee Sing Wong, CNBC Supervising Producer, contributed to this story.