The Greek Parliament will hold a vote on Wednesday to enact the first set of reforms demanded by eurozone creditors in exchange for a new bailout.
The omnibus bill on“Emergency Measures for the Negotiation and Agreement with the European Stability Mechanism (ESM)”, that is, the “prior actions” demanded by its creditors as a sign of rebuilding trust after six months of often acrimonious talks.
Discussion will begin at committee level at 10 a.m. and then move to a plenary debate at about 2 p.m.
According to sources, Parliament speaker Zoe Konstantopoulou, known to oppose the bailout, will not preside over the debate.
The last-ditch deal struck Monday imposes further tax hikes and budget cuts on the austerity-weary nation and forces it to put about €50 billion worth of state assets into a privatization fund to repay its debts and shore up its banks in exchange for new funds to keep Greece's struggling economy alive.
The parliament in Athens must approve the deal before the 18 other eurozone leaders start negotiations over what Greece is to get in return: a three-year bailout worth up to €86 billion, its third rescue program in five years.
Attention is shifting to the parliamentary hurdles as left-wing rebels in the ruling Syriza party, and its junior coalition partner, the right-wing Independent Greeks (Anel) party, said they wouldn’t consent to further austerity.
Prime Minister Alexis Tsipras has been forced to turn to pro-European opposition parties for support in Wednesday’s crucial vote, meaning the bailout bill should pass comfortably.
Tsipras had support from 162 of 300 members of parliament, but that fell to roughly 145 seats, including abstentions and no-shows, after he drafted an austerity-laced plan to present to European leaders last weekend. The final deal was even more severe.
At least 30 lawmakers are expected to vote against the agreement with creditors, which clearly goes against their pre-election pledges of ending budget consolidation policies.
Dissenters from Syriza’s ranks include some high-profile lawmakers and ministers like Energy Minister Panagiotis Lafazanis, Parliament speaker Zoe Konstantopoulou, and Deputy Minister of Social Security Dimitris Stratoulis. Former Finance Minister Yanis Varoufakis was also absent from Saturday’s vote, citing personal reasons.
Changes are expected to come thick and fast in the next few days. The prime minister will have to reshuffle his cabinet and possibly form a new unity government later this week. While there is no real desire for opposition parties to participate in the a national unity government at present, they may press for the appointment of technocrats.