Greek Parliament passes austerity bill

[webfact]

Greek lawmakers pass austerity bill despite dissent
ELENA BECATOROS, Associated Press
DEREK GATOPOULOS, Associated Press

ATHENS, Greece (AP) — Greek lawmakers voted overwhelmingly early Thursday to approve a harsh austerity bill demanded by bailout creditors, despite significant dissent from members of Prime Minister Alexis Tsipras' left-wing party.

The bill has fueled anger in the governing Syriza party and led to a revolt by party members against the prime minister, who has insisted the deal forged after a marathon weekend eurozone summit was the best he could do to prevent Greece from catastrophically crashing out of Europe's joint currency.

The bill, which imposes sweeping tax hikes and spending cuts, was approved with 229 votes in favor, 64 against and six abstentions — and with the support of three pro-European opposition parties.

Prominent Syriza party members were among the 38 dissenters, including Energy Minister Panagiotis Lafazanis and former finance minister Yanis Varoufakis, who many blame for exacerbating tensions with Greece's creditors with his abrasive style during five months of tortured negotiations.

The vote came after an anti-austerity demonstration by about 12,000 protesters outside parliament degenerated into violence as the debate was getting underway Wednesday night. Riot police battled youths who hurled petrol bombs for about an hour before the clashes died down.

The bill was the first step Greece must take in order to begin negotiations with creditors on a new bailout — its third in five years — of about 85 billion euros ($93 billion) in loans over three years.

Dissenters argued that Greeks could not face any further cuts after six years of recession that saw poverty and unemployment skyrocket and wiped out a quarter of the country's economy.

Tsipras has been battling all week to persuade party hard-liners to back the deal. He has acknowledged the agreement reached with creditors was far from what he wanted and trampled on his pre-election promises of repealing austerity, but insisted the alternative would have been far worse for the country.

"We had a very specific choice: A deal we largely disagreed with, or a chaotic default," he told parliament ahead of the vote.

Tsipras had urged Syriza members to back the bill despite having urged voters to reject earlier, milder creditor demands in a July 5 referendum. Greeks voted overwhelmingly to reject those proposals.

Finance Minister Euclid Tsakalotos, who took over from Varoufakis the day after the referendum, said the deal Greece reached with its creditors on Monday was the only possible choice.

"I must tell you, that Monday morning at 9:30, it was the most difficult day of my life. It was a decision that will weigh on me for the rest of my life," Tsakalotos said.

"I don't know if we did the right thing. But I know we did something with the sense that we had no choice. Nothing was certain and nothing is," he told parliament.

High-ranking dissenters included Alternate Finance Minister Nadia Valavani, who resigned from her post earlier Wednesday, saying she could not vote in favor of the bill.

In a letter sent to Tsipras on Monday and released by the finance ministry Wednesday, Valavani said she believed "dominant circles in Germany" were intent on "the full humiliation of the government and the country."

The economy ministry's secretary general, Manos Manousakis, also resigned over the measures.

Parliament speaker Zoe Konstantopoulou, a prominent Syriza member, slammed the deal as a product of blackmail, calling it a "crime against humanity" and "social genocide."

Thursday's vote came after more than two weeks of capital controls, with Greek banks and the stock exchange shut since June 29 and ATM cash withdrawals limited to 60 euros per day.

With its banks dangerously low on liquidity and the state practically out of cash, Greece desperately needs funds. It faces a Monday deadline to repay 4.2 billion euros ($4.6 billion) to the European Central Bank, and is also in arrears on 2 billion euros to the IMF.

Negotiations on the new bailout will take an estimated four weeks, leaving European finance ministers scrambling to find ways to get Athens some money sooner.

The European Commission has proposed giving Greece 7 billion euros in loans from a special fund overseen by all 28 EU nations so it can meet its upcoming debts. The loan would be made pending the start of a full bailout program, but faces resistance from Britain, a non-euro member of the EU.

Germany argued one way for Greece to meet its financing obligations was for it to issue IOUs for domestic needs.


-- (c) Associated Press 2015-07-16

[mmh8]

there is no way the Greecy ones will keep to any austerity deal. they did not last, they will not this time. we all know it, europe must know it. on the streets of greece the population are'nt going to be giving money back especially when they associate europe with Germany.

on that note I would like to forward the message boycott German products. Something good coming out of Greece after all.

[cloudhopper]

The Greek government just passed legislation that was clearly voted down by the majority of its own people in the "cradle of democracy" and has essentially given the country away to the German bankers.

The korporate world wins again.

[Lissos]

The korporate world wins again.

Essentially, yes. On an entirely selfish note, I was curious to see how things would pan out, away from tge 'Empire'. However, I don't live there and wouldn't have had to live with the consequences of the experiment. In a second selfish note, expect Greek holidays to go up in price now as I believe one of the rescue package conditions was that a 30% tax break on some of the more wealthy Greek islands, was lifted. Nobody truly wins from this outcome, as far as I can see.

[JakeSully]

If there is ever a WW III, this is the spark plug.. Germany destabilizing Greece.

Nationalism is next..

[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

[Credo]

It was obvious pretty early on that Greece was holding the winning hand in this situation and that Europe could not allow the truth of the situation to be exposed.

It's a little like the guy who called the police because his pot was stolen....there were no winners.

[Usernames]

After a couple of installment payments on the loan, the Greek parliament will quickly vote to scrap the "austerity" and the party will go on and on until the next round of negotiations, when things will repeat themselves.

[JockPieandBeans]

Tragic to see the footage of last nights rioting on the streets of Athens.

Sadly, I fear, this is only the start. There is worse to come.

[RuamRudy]

Tragic to see the footage of last nights rioting on the streets of Athens.

Sadly, I fear, this is only the start. There is worse to come.

Sad to see, but perfectly understandable - democracy is slowly dying around the world as powerful institutions take control of governments and unify their alliances. What options do the little people have now, when there is nobody speaking up for them? I am only surprised that the riots are not bigger and not only confined to Greece. I think you are right it is only a matter of time.

[JockPieandBeans]

Tragic to see the footage of last nights rioting on the streets of Athens.

Sadly, I fear, this is only the start. There is worse to come.

Sad to see, but perfectly understandable - democracy is slowly dying around the world as powerful institutions take control of governments and unify their alliances. What options do the little people have now, when there is nobody speaking up for them? I am only surprised that the riots are not bigger and not only confined to Greece. I think you are right it is only a matter of time.

Agreed, it is understandable.

I have never subscribed to this democracy crap. All Countries live under different levels of Dictatorship.

Little people do not have real options. They pay their taxes and die. Some make enough money to have some options, most do not.

There is worse to come for Greece and its people.

Edited July 16, 2015 by JockPieandBeans

[h90]

If there is ever a WW III, this is the spark plug.. Germany destabilizing Greece.

Nationalism is next..

If Greece declares war on Germany, Germany might need a year or two to even notice it....

[HughJass]

It is a slow day in a little Greek village. The rain is beating down and the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit. On this particular day a rich German tourist is driving through the village, stops at the local hotel and lays a €100 note on the desk, telling the hotel owner he wants to inspect the rooms upstairs in order to pick one to spend the night. The owner gives him some keys and, as soon as the visitor has walked upstairs, the hotelier grabs the €100 note and runs next door to pay his debt to the butcher. The butcher takes the €100 note and runs down the street to repay his debt to the pig farmer. The pig farmer takes the €100 note and heads off to pay his bill at the supplier of feed and fuel. The guy at the Farmers' Co-op takes the €100 note and runs to pay his drinks bill at the taverna. The publican slips the money along to the local prostitute drinking at the bar, who has also been facing hard times and has had to offer him "services" on credit. The prostitute then rushes to the hotel and pays off her room bill to the hotel owner with the €100 note. The hotel proprietor then places the €100 note back on the counter so the rich traveler will not suspect anything. At that moment the traveller comes down the stairs, picks up the €100 note, states that the rooms are not satisfactory, pockets the money, and leaves town.

No one produced anything. No one earned anything. However, the whole village is now out of debt and looking to the future with a lot more optimism. And that, Ladies and Gentlemen, is how the bailout package works.

Edited July 16, 2015 by HughJass

[SheungWan]

It is a slow day in a little Greek village. The rain is beating down and the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit. On this particular day a rich German tourist is driving through the village, stops at the local hotel and lays a €100 note on the desk, telling the hotel owner he wants to inspect the rooms upstairs in order to pick one to spend the night. The owner gives him some keys and, as soon as the visitor has walked upstairs, the hotelier grabs the €100 note and runs next door to pay his debt to the butcher. The butcher takes the €100 note and runs down the street to repay his debt to the pig farmer. The pig farmer takes the €100 note and heads off to pay his bill at the supplier of feed and fuel. The guy at the Farmers' Co-op takes the €100 note and runs to pay his drinks bill at the taverna. The publican slips the money along to the local prostitute drinking at the bar, who has also been facing hard times and has had to offer him "services" on credit. The prostitute then rushes to the hotel and pays off her room bill to the hotel owner with the €100 note. The hotel proprietor then places the €100 note back on the counter so the rich traveler will not suspect anything. At that moment the traveller comes down the stairs, picks up the €100 note, states that the rooms are not satisfactory, pockets the money, and leaves town.

No one produced anything. No one earned anything. However, the whole village is now out of debt and looking to the future with a lot more optimism. And that, Ladies and Gentlemen, is how the bailout package works.

Since when did anybody give a hotelier a $100 to look at a room? Try a different re-tread and next time work it in with a 100 New Drachma note.

[SheungWan]

there is no way the Greecy ones will keep to any austerity deal. they did not last, they will not this time. we all know it, europe must know it. on the streets of greece the population are'nt going to be giving money back especially when they associate europe with Germany. on that note I would like to forward the message boycott German products. Something good coming out of Greece after all.

Yes, boycott Bosch washing machines and buy Turkish Beko washing machines instead. With Euros loaned from outside of course.

[sammygood]

they have no intention of paying back anything, still they expect more & more money to keep their greedy lives (cheating on pensions of dead people, not paying taxes)

i red somewhere that the richest 2000 greek people have 1500 billion euro parked in swiss banks ...

[pattayasnowman]

Absolutely incredible - broken promises the governing Syriza party . So much for the value of a Referendum.

Lets find out what the people want then take no bloody notice

A complete sell out to the power of the Western Banks . The 'third' world has been getting shafted like this for years and now it coming closer to a country near you.

[Srikcir]

The Greek majority wasted four months of negotiations through the Syriza Party attempting the impossible: to stay in the EU but not to pay its EU debt.

The EU had every right to stand its ground and deny further concessions without firm Greek commitment to austerity to meet its obligations. If Tsipras had been honest about the nation's economy, this deal could have been accomplished much earlier without the Finance Minister's prancing around Europe.

So it seems that Tsipras, while running on an anti-austerity campaign and asking voters to vote against the austerity referendum, valued his position more than he valued his honesty. A vote of confidence by the parliament on Tsipras continuing to lead the nation might be on its next agenda. Bring back the conservative government that was right all along, just not very popular.

[wabothai]

Why blame the Germans or the average Greeks for that matter?

The Greek governments and its representatives are to blame from the start.

The Europeans are to blame for not keeping sufficient tabs.

The guilty ones are either dead or collecting their "pensions".

[rosst]

The Greek majority wasted four months of negotiations through the Syriza Party attempting the impossible: to stay in the EU but not to pay its EU debt.

The EU had every right to stand its ground and deny further concessions without firm Greek commitment to austerity to meet its obligations. If Tsipras had been honest about the nation's economy, this deal could have been accomplished much earlier without the Finance Minister's prancing around Europe.

So it seems that Tsipras, while running on an anti-austerity campaign and asking voters to vote against the austerity referendum, valued his position more than he valued his honesty. A vote of confidence by the parliament on Tsipras continuing to lead the nation might be on its next agenda. Bring back the conservative government that was right all along, just not very popular.

Along the same lines, what responsibility does the electorate bear for electing politicians who would not administer the needed reforms that led to this disgraceful overspending on social policy whilst ignoring the needs to increase taxes to pay for them ?? Retirement at an early age and no financial base for these decisions, who bears the responsibility for this?? It is probably the demonstrators who are now objecting to pay the price of their folly.

[rosst]

Why blame the Germans or the average Greeks for that matter?

The Greek governments and its representatives are to blame from the start.

The Europeans are to blame for not keeping sufficient tabs.

The guilty ones are either dead or collecting their "pensions".

Sorry, I need to disagree with you, it is the electorate that allows the party to promise what it knows it cannot deliver to be in power.

How do I know this ?? It is becoming very self evident in a number of so called democracies, not least of which is my own, Australia where the treasurer advises we cannot afford to continue middle class welfare and his statements are howled down by the opposition and his own colleagues due to the realisation that the truth will see them turfed out at the next election by the electorate who knows we cannot afford it but do not care. Oh dear, this is what happened in Greece, so who is to blame ?? Try thinking about it ??

[OJAS]

After a couple of installment payments on the loan, the Greek parliament will quickly vote to scrap the "austerity" and the party will go on and on until the next round of negotiations, when things will repeat themselves.

Yep, just a brief hiatus before the ouzo starts flowing freely again!

[sandyf]

After a couple of installment payments on the loan, the Greek parliament will quickly vote to scrap the "austerity" and the party will go on and on until the next round of negotiations, when things will repeat themselves.

Almost a foregone conclusion. They falsified their accounts to join the EU in the first place so they could live beyond their means at someone else's expense.

[Johpa]

Tragic to see the footage of last nights rioting on the streets of Athens.

Sadly, I fear, this is only the start. There is worse to come.

Just wait until the USA faces the same decisions as Greece. How do you think the 40-plus% of US citizens that are on government assistance will react when their EBT cards are invalid and their housing and medical vouchers are voided? If people think the riots in Ferguson, Missouri or Baltimore, Maryland were bad, wait until it is nationwide in the USA.

Yes, we can expect an uprising in the US when the masses go hungry whilst the 1% holds over 60% of the wealth.

The warning flag has been raised by a member of the 1% whose sees the folly of his peers.

http://www.politico.com/magazine/story/2014/06/the-pitchforks-are-coming-for-us-plutocrats-108014.html#.VafRJvmSfYg

[SheungWan]

After a couple of installment payments on the loan, the Greek parliament will quickly vote to scrap the "austerity" and the party will go on and on until the next round of negotiations, when things will repeat themselves.

Almost a foregone conclusion. They falsified their accounts to join the EU in the first place so they could live beyond their means at someone else's expense.

Actually they will be making a big mistake if they think that they can attempt to play the same party trick. Tsipras will have to deliver otherwise the next time they turf themselves out/are turfed out. The key is implementation of any supply-side structural measures. Syriza will be split on that one.

[Ulic]

Greece passes austerity bill, gets money from EU, Greece repeals austerity bill with promise

to pay in the distant, distant future, some time when hell freezes over.

[SheungWan]

Greece passes austerity bill, gets money from EU, Greece repeals austerity bill with promise

to pay in the distant, distant future, some time when hell freezes over.

EU money is not paid in one big go. They know what Greece might do, so money will be released over a period of time depending on deliverables.

[happy Joe]

This Greek story sounds the end of a perverted democracy form where leaders promise of benefits with a budget they do not have the sole purpose of being elected.

In France we have exactly the same problem.

See also Italy, Spain, Portugal and others probably ...

Edited July 17, 2015 by happy Joe

[sandyf]

After a couple of installment payments on the loan, the Greek parliament will quickly vote to scrap the "austerity" and the party will go on and on until the next round of negotiations, when things will repeat themselves.

Almost a foregone conclusion. They falsified their accounts to join the EU in the first place so they could live beyond their means at someone else's expense.

Actually they will be making a big mistake if they think that they can attempt to play the same party trick. Tsipras will have to deliver otherwise the next time they turf themselves out/are turfed out. The key is implementation of any supply-side structural measures. Syriza will be split on that one.

The Germans are still suggesting that Greece makes a temporary exit to write down the debt. Probably hoping for a temporary arrangement on a permanent basis.

[SheungWan]

After a couple of installment payments on the loan, the Greek parliament will quickly vote to scrap the "austerity" and the party will go on and on until the next round of negotiations, when things will repeat themselves.

Almost a foregone conclusion. They falsified their accounts to join the EU in the first place so they could live beyond their means at someone else's expense.

Actually they will be making a big mistake if they think that they can attempt to play the same party trick. Tsipras will have to deliver otherwise the next time they turf themselves out/are turfed out. The key is implementation of any supply-side structural measures. Syriza will be split on that one.

The Germans are still suggesting that Greece makes a temporary exit to write down the debt. Probably hoping for a temporary arrangement on a permanent basis.

Some are suggesting. That is not the official position. However, the EU will not take much messing around from Greece if there is clear evidence of non-compliance re the agreement. Not business as usual this time. Tsipras will have been read the riot act.