The countdown is on to the critical vote in the Greek parliament on Wednesday.
Late last Thursday, Greek MPs voted 229-64 in favor of the package of reforms clearing the way for a three-year nearly €90 billion financing deal. Of the 149 Syriza legislators, 32 voted against and 6 abstained, resulting in 38 Syriza MPs objecting the reforms demanded by Greece's creditors.
The Greek government is facing another difficult week as Prime Minister Alexis Tsipras prepares to face a second critical vote to secure a bailout agreement. At least four lawmakers in the Syriza party are likely to join the 38 dissenters, or those who abstained from voting on Thursday's vote. Such a revolt would not necessarily bring the government down or put at risk the €86 billion bailout but it would increase the likelihood of a snap general election by Fall.
Tsipras will have to smother dissent from hardliners in his own party and may have to count on votes from pro-European opposition parties to pass the legislation.
Nevertheless the measures that will be up for parliamentary approval on Wednesday are less controversial than last week’s package of budget cuts and tax hikes. Wednesday's vote will be on a new code of civil procedure which is aimed at speeding court cases. As The Financial Times reports the new code is “an essential reform in a country where expensive court cases that last for many years are the despair of the business community.” Members of parliament will also vote to adopt EU legislation to bolster banks against crises known as the Bank Recovery and Resolution Directive (BRRD).
But the Syriza-led government opted to postpone legislation on early retirement and taxes for farmers. The government clarified in a statement Monday that those measures had not been included in the prior actions that Greece has committed to. Nevertheless pension reforms, and the abolishment of preferential tax treatment and fuel subsidies for farmers will be addressed in the future, possibly on August.
Later on Greek lawmakers must undertake product, energy, and labor market reforms, strengthen the financial sector, improve the privatization program, and transfer “valuable Greek assets” to “an independent fund” that “will monetize the assets” for bank recapitalization, loan repayment, decreasing the debt to GDP ratio, and investment.
Greece's creditors require the Greek government to “consult and agree with the Institutions on all draft legislation in relevant areas,” request technical assistance with implementation from the creditor Institutions and member states, and repeal or compensate for laws that backtracked on previous agreements.