Agony for the multi-bill and the reactions

The Greek government is preparing for a difficult summer as the multi-bill with the prerequisites for the disbursement of tranches is causing fights with powerful local government unions and reactions among MP’s of both coalition parties.

These developments were discussed in yesterday's meeting between Samaras Venizelos, Finance Minister Yannis Stournaras and Interior Minister Yannis Michelakis.

The provisions of the multi-bill have already mobilized the local government officials and teachers. The possibility of prolonged mobilization with uncollected garbage in the streets is not the best prospect for the government which is reportedly determined to honor a hard line. It considers the reactions will abate after the enactment of the multi-bill until July 19 and says that as the settings are pre-requisites for the disbursement of tranches there is no way it will back out. It also says it is under heavy criticism abroad for delays in the collection of taxes and the reluctance to move to a dismissal of civil servants. And it is important that the bill will not be filed in one article but in 108. This will enable MPs to vote against individual settings.

The bill will be passed, as the argument will once again be that voting against it will topple the government. However, it is expected that several MPs will express their disagreement. There might also be leakage from the already weakened coalition due to the departure of the Democratic Left.

The climate is further aggravated by economic developments and the recent negative Eurogroup decision. A budgetary gap is also detected, which should be covered by the financial authorities. Stournaras assures that no budgetary gap will exist if the budgeted revenue is collected in the second half of the year.

The Greek government expects that EU will approve the VAT reduction in catering in the next ten days so that it can be implemented from August 1.