EUROZONE-GREECE/BAILOUT-VOTE Greek parliament approves reform bill ahead of bailout review

Record ID: 134592

  • Title: EUROZONE-GREECE/BAILOUT-VOTE Greek parliament approves reform bill ahead of bailout review
  • Date: 17th October 2015
  • Summary: ATHENS, GREECE (OCTOBER 17, 2015) (REUTERS) ENTRANCE TO PARLIAMENT MAIN OPPOSITION NEW DEMOCRACY PARTY PARLIAMENTARY SPOKESPERSON, KYRIAKOS MITSOTAKIS, LEAVING SOUNDBITE) (English) MAIN OPPOSITION NEW DEMOCRACY PARTY PARLIAMENTARY SPOKESPERSON, KYRIAKOS MITSOTAKIS, SAYING: "Unfortunately it is implementing the wrong policy mix, focussing again on increasing taxes rather th
  • Embargoed: 1st November 2015 12:00
  • Keywords:
  • Location: Greece
  • Country: Greece
  • Topics: General
  • Reuters ID: LVA2YBMPL3KSL8IYY2K4SOZA36FV
  • Aspect Ratio: 16:9
  • Story Text: Greece approved an omnibus bill early on Saturday (October 17) cutting pensions, raising the retirement age, increasing punishments for tax evasion and liberalising the energy market ahead of the first review of the country's new bailout later this month.
    Inspectors from the European Commission, European Central Bank, eurozone rescue fund and International Monetary Fund are expected in Athens at the end of October to assess progress on Greece's third international bailout.
    In a long debate, which started early Friday (October 16) and ended an hour after midnight, 154 lawmakers from the co-governing leftist Syriza and right wing Independent Greeks approved the broad outline of measures in the 300-seat parliament.
    Athens wants to wrap up the review and recapitalise its banks quickly, to secure fresh aid and talks on debt relief. But it must first enact a long list of reforms in its 86-billion-euro bailout, which was approved by pro-EU opposition parties in August.
    But on Saturday, all three opposition parties that had supported the bailout deal now rejected the bill, voting 'yes' only on certain articles.
    Greece's prime minister, Alexis Tsipras, said it was illogical for the three parties to oppose the omnibus bill, as the measures it contains were known to them when they had voted in favour of the bailout deal.
    "There are no new measures - there are difficult measures, but we already knew that. You knew, we knew, we've all known about them since August. And the truth is, my colleagues from New Democracy, Potami and Pasok, you knew about them when you were voting with us in favor of the bailout deal of August 13," said Tsipras during the debate.
    But main opposition New Democracy leader, Vangelis Meimarakis, said he refused to give Tsipras a blank cheque to govern as he saw fit.
    "Anything that is good for the country, we will support it, but anything that is a tax, a cut or recessionary, we will oppose it, there is no way we will give you a blank cheque to govern," said Meimarakis.
    The bill includes only a first set of reforms that include a gradual raising of the retirement age to 67 years by 2022 and cuts pensions by 10 percent for people below that age who have retired.
    One Independent Greek lawmaker rejected pension and tax reforms in an article-by-article vote, but agreed with the package in principle.
    New Democracy lawmaker and parliamentary spokesman, Kyriakos Mitsotakis criticized the measures, calling them tax-heavy.
    "Unfortunately it is implementing the wrong policy mix, focussing again on increasing taxes rather than cutting spending. New Democracy is going to be opposed to this approach, we will support all structural reforms that improve the competitiveness of the Greek economy and the effectiveness of the Greek state. Unfortunately, we haven't seen many of those measures yet," said Mitsotakis after the voting ended.
    Labour minister George Katrougalos acknowledged the harshness of the measures, but said the government remained committed to finding growth.
    "It is certainly harsh, certainly there are many neoliberal elements within this programme, and exactly for this reason we must balance them with development and growth measures and also with measures that are going to have a socially sensitive direction," said Katrougalos as he left parliament.
    Greece has promised its creditors a comprehensive pension reform plan by December. But Tsipras' leftist-led administration faces resistance to changes from a country worn down by six years of recession and austerity.
    Greece has made several failed attempts to overhaul its pension system, most recently in 2010. Failing to pursue reforms and raise revenues during the crisis, it imposed several waves of deep pension cuts.
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