Greece: Revolt over austerity deal grows ahead of vote

[webfact]

Greece: Revolt over austerity deal grows ahead of vote
By DEREK GATOPOULOS and ELENA BECATOROS

ATHENS, Greece (AP) — Greece's left-wing government launched a frantic 24-hour effort late Tuesday to push more austerity measures through Parliament and meet demands from European creditors as it faced down mounting anger at home.

The belt-tightening measures, which include pension cuts and higher sales tax rates on everything from condoms to racehorses, were agreed upon with eurozone leaders to prevent the Greek economy from collapsing, and as part of a planned third bailout worth 85 billion euros ($93 billion).

The new measures mean economically-battered Greeks will pay more for most goods and services by the end of the week.

Hard-liners in Prime Minister Tsipras' own Syriza party were in open revolt, and unions and trade associations representing civil servants, municipal workers, pharmacy owners and others called or extended strikes to coincide with Wednesday's Parliament vote.

Energy Minister Panagiotis Lafazanis said lead eurozone lender Germany and its allies had acted like "financial assassins" by forcing the deal on Athens, and urged Tsipras to reject it.

"The deal is unacceptable," Lafazanis said in a statement. "It may pass through Parliament ... but the people will never accept it and will be united in their fight against it."

In an interview on state TV, Tsipras said he would not step down, despite the open dissent within his own Cabinet and party. "I will not run away from my responsibilities," he said.

He also criticized the deal, but said it was the best Greece could get.

"The policies imposed on us were irrational," Tsipras said. "We faced a tough and punitive position from our partners ... But the (agreement) does offer a way out of the crisis."

Pro-European opposition parties have pledged support for the bailout bills, but Tsipras could effectively lose his majority in Parliament, weakening his ability to push through measures that he had himself vehemently opposed until a few weeks ago.

Tsipras' coalition partner, Defense Minister Panos Kammenos, also bitterly denounced the new deal.

"There was a coup. A coup in the heart of Europe," said Kammenos, who heads the right-wing Independent Greeks party.

"They want the government to fall and replace it with one not elected by the Greek people."

The government holds 162 seats in Greece's 300-member Parliament, and more than 30 of Syriza's own lawmakers have publicly voiced objections.

There was speculation Tsipras might choose to reshuffle his Cabinet, which would remove dissenters from key positions.

Athens was forced to accept harsh terms to remain in the euro after defaulting on its debts to the International Monetary Fund and closing banks to prevent a deposit run.

On Tuesday, the International Monetary Fund said Greece's finances were even more dire than previously reported. The IMF said Greece's debts would peak over the next two years at 200 percent of the country's economic output; earlier it had said the debt burden would peak last year at 177 percent. The IMF now says Greece needs more debt relief and 85 billion euros in new financing (up from an earlier estimate of around 60 billion euros) through 2018.

The IMF said that "Greece's debt can now only be made sustainable through debt relief measures that go far beyond what Europe has been willing to consider so far."

Greece faces a deadline Monday to repay 4.2 billion euros ($4.6 billion) to the European Central Bank. It is also in arrears on 2 billion euros to the IMF.

It will take an estimated four weeks for Greece to access the new bailout loans, leaving EU finance ministers scrambling to find ways to get Athens some of the money sooner.

U.S. Treasury Secretary Jacob Lew is traveling to Europe to confer with officials about the Greek crisis. Lew will meet Wednesday in Frankfurt with European Central Bank chief Mario Draghi. On Thursday, he will meet German Finance Minister Wolfgang Schaeuble and French Finance Minister Michel Sapin.

The months-long standoff between Greece and its creditors has taken a heavy toll on an economy that started the year with a 2.9 percent growth forecast.

A Greek small business association said Tuesday that the new austerity measures were likely to cause the economy to shrink for a seventh year, with a 3.5 percent drop in output.

Despite the bleak forecasts, some Greeks appeared to take the latest turmoil in stride, saying the measures Greece will have to pass are harsh but that the alternative would have been worse.

"We aren't in a good position within the European Union under the current measures and under this present situation," said Kostas Plafoutzis, an Athens merchant. "But under the current conditions, if we exit the EU, we will find ourselves in a considerably worse situation."
____

Associated Press writers Pan Pylas in Brussels, Anna Psaroudaki in Athens and Paul Wiseman and Martin Crutsinger in Washington contributed to this report.


-- (c) Associated Press 2015-07-15

[Katipo]

Austerity without simultaneously stimulating growth is not going to help Greece in the long term, so it's good to see some of this new bailout package being earmarked for just that.

[phantomfiddler]

They have been living beyond their means for many years, and are acting like a bunch of spoiled children whose rattles have been taken away. Sick it to them, reality often hurts

[trogers]

Democracy given to drug addicts to vote for abstinence from drugs...

[EnglishJohn]

The restructuring of the EU into something the people want is going to be very painful.

The politicians will not allow it and may well cause it to disintegrate rather than give up this outrageous gravy train.

People want free markets and easy access to EU countries - not mass migration from poorer countries and laws which override those made by the elected government.

Nothing will surprise me now.

[siam2007]

there was a poll in Greece yesterday and it showed that 70% accept the conditions and want it to go on. So ok let the other 30% revolt. If there would be a poll with taxpayers from the entire rest of Europe, I am sure 90% would be more than happy if the Greek government votes AGAINST the austerity measures and finally heads to the EXIT DOOR. who on earth wants to support an army of spoilt TAX EVADERS until forever ? Not me.....

[siam2007]

Greeks Have Nobody to Blame but Themselves and Tsipras for Their Bad Deal

http://www.thestreet.com/story/13217712/2/greeks-have-nobody-to-blame-but-themselves-and-tsipras-for-their-bad-deal.html

[Usernames]

The Greeks are going to take this 90 billion and run.

[Basil B]

Anyone surprised???

My guess is the opposition will reluctantly support it and then call a vote of no confidence...

[h90]

Austerity without simultaneously stimulating growth is not going to help Greece in the long term, so it's good to see some of this new bailout package being earmarked for just that.

But selling all the strategic companies, airports, banks, electric, etc etc is going to help some "investors" immense. And no one cares about the normal people as long as some super rich elites in Europe and USA is happy.

[JockPieandBeans]

Do not know if this is sour grapes on behalf of the IMF.

The International Monetary Fund (IMF) has warned a third bailout of Greece may already be in jeopardy and attacked the deal offered by eurozone leaders.

It said Greece's public debt had become "highly unsustainable" and some form of debt relief was now required.

Late on Tuesday, the IMF made public advice it had given to the Eurogroup of finance ministers at the weekend.

That advice included proposals that would see some of Greece's enormous debt written off

http://www.bbc.com/news/business-33531845

If it is true. It only confirms my suspicions that Greece has been regally shafted by the EU without Vaseline. For the benefit of certain sections of the EU and absolutely nothing to do with assisting Greece in its current predicament.

[JingerBen]

Turn Greece into an historical theme park and stop pretending that it is a country that can govern itself.

[wabothai]

Greece will never survive without the help of Europe.

What alternative do they have anyway?

How many Greecs do understand the complex problems it is dealing with. And yes, they have to vote on it.

Now the swamp is getting bigger and bigger and who is going to benefit from that?

[elgordo38]

Austerity without simultaneously stimulating growth is not going to help Greece in the long term, so it's good to see some of this new bailout package being earmarked for just that.

But selling all the strategic companies, airports, banks, electric, etc etc is going to help some "investors" immense. And no one cares about the normal people as long as some super rich elites in Europe and USA is happy.

They are already lining up like vultures at a fire sale to buy great companies at pennies on the dollar. Yes the super rich elites win again. The poor and downtrodden gain nothing but more misery. Its the same world wide our politicians are brazenly selling us out.

[SheungWan]

Austerity without simultaneously stimulating growth is not going to help Greece in the long term, so it's good to see some of this new bailout package being earmarked for just that.

But selling all the strategic companies, airports, banks, electric, etc etc is going to help some "investors" immense. And no one cares about the normal people as long as some super rich elites in Europe and USA is happy.

They are already lining up like vultures at a fire sale to buy great companies at pennies on the dollar. Yes the super rich elites win again. The poor and downtrodden gain nothing but more misery. Its the same world wide our politicians are brazenly selling us out.

The state sector in Greece is a joke and needs privatization.

[NeverSure]

CRISIS IN GREECE

"The I.M.F. Is Telling Europe the Euro Doesn’t Work."

JULY 14, 2015

"It reads like a dry, 1,184-word memorandum about fiscal projections. But the International Monetary Fund’s memo on Greek debt sustainability, explaining why the I.M.F. cannot participate in a new bailout program unless other European countries agree to huge debt relief for Greece, has provided the “Emperor Has No Clothes” moment of the Greek crisis, one that may finally force eurozone members to either move closer to fiscal union or break up.

The I.M.F. memo amounts to an admission that the eurozone cannot work in its current form. It lays out three options for achieving Greek debt sustainability, all of which are tantamount to a fiscal union, an arrangement through which wealthier countries would make payments to support the Greek economy. Not coincidentally, this is the solution many economists have been telling European officials is the only way to save the euro — and which northern European countries have been resisting because it is so costly."

New York Times

-----------

I've been posting in these threads that it is the Eurozone that is afraid of a Greek default and/or a grexit, more than Greece is afraid and Greece knows it.

Europe has screwed the pooch royally.

Cheers

Edited July 15, 2015 by NeverSure

[Star Dust]

I'm currently in Vienna. Media reports about Greece are updated every hour, and all are negative towards Greece, Greek people, Greek economy, etc; including travel warnings. And we Austrians learned our fair share about propaganda machines.

Austrian media has not mentioned this interview.

I'm gonna go and make popcorn, and wait for your comments.

http://www.newstatesman.com/world-affairs/2015/07/yanis-varoufakis-full-transcript-our-battle-save-greece

[Neurath]

I'm currently in Vienna. Media reports about Greece are updated every hour, and all are negative towards Greece, Greek people, Greek economy, etc; including travel warnings. And we Austrians learned our fair share about propaganda machines.

Austrian media has not mentioned this interview.

I'm gonna go and make popcorn, and wait for your comments.

http://www.newstatesman.com/world-affairs/2015/07/yanis-varoufakis-full-transcript-our-battle-save-greece

Excellent piece! Thanks very much for the link.

[SheungWan]

I'm currently in Vienna. Media reports about Greece are updated every hour, and all are negative towards Greece, Greek people, Greek economy, etc; including travel warnings. And we Austrians learned our fair share about propaganda machines.

Austrian media has not mentioned this interview.

I'm gonna go and make popcorn, and wait for your comments.

http://www.newstatesman.com/world-affairs/2015/07/yanis-varoufakis-full-transcript-our-battle-save-greece

Varoufakis spent 6 months talking crap and convincing nobody.