Wednesday, June 29, 2011

What happens if the Greek Parliament rejects the cuts?

The Parliament of Greece debate until Wednesday morning that the vote will produce the new adjustment plan must pass in order to unlock the fifth tranche of the loan rescue, and pave the way for a second rescue, reports As of July 18, the coffers of Greece are empty without the possibility to meet their financial commitments.

Entail financial costs only 6850 million. So are the keys to 12,000 million from the IMF. Without that money,  Greece fall into default. Approval of the new adjustment plan in the Greek Parliament should be a formality once the president, George Papandreou last week saved the vote of confidence.

The ruling party has a majority in the chamber sufficient to validate the new measures. The Panhellenic Socialist Movement (PASOK) has 155 of the 300 seats, but in the last week three Socialist deputies have deserted the party and two others have expressed their desire not to vote, which the parliamentary majority is in the air .

The group has replaced two of the three MPs as they wasted no record of deputies. At this time (PASOK) has only one vote to push through new reforms and a few parliamentary support. The largest opposition party, New Democracy, being the scourge of government with a policy of attrition because of the economic crisis.

The leader of the political party tries to provoke early elections. Moreover, the Communist Party of Greece with 21 MPs and the country's third political force is totally opposed to the new adjustment plan as it did with the old. In addition, key trade union movements that are crippling the country.

The only asset with which Papandreou account for the failure of any more is the Democratic Alliance deputy with five deputies, a division of New Democracy, which plays cat and mouse.

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