Greek trade union ADEDY public sector workers on Wednesday, wants to carry out 24-hour strike. That the Greek parliament on Wednesday has outvote the agreement reached in Brussels. 24-hour general strike called on the municipal workers’ union POE-OTA.
ADEDY also calls for a demonstration on Wednesday evening at Syntagma Square “in Athens.
This is the first strike of public sector workers in Greece since coming to power populist leftist Syrizy in January. Syriza came out under the banner of breaking the austerity of the years 2010-2014 under two previous programs austerity for Greece in exchange for help international amounting to over 240 billion euros.
The Greek parliament to vote on Wednesday is an agreement adopted in Brussels on Monday morning and enact laws on a number of agreed reforms. Concessions for the benefit of creditors may trigger disputes within the coalition with Syriza in the lead. However, the voices of at least one opposition party should enable the majority of “yes.” The total value of the new aid program for Greece is expected to be between 82 and 86 billion.
It is already known that Syrizy coalition partner, the party Independent Greeks, will not support an agreement negotiated in Brussels. Grouping will remain in the government.
Agreement after all-night negotiations
The Eurogroup negotiations on the new program for Greece lasted all night from Sunday to Monday. In return, Athens will have to make difficult reforms and transfer assets to a special fund.
The European Council President Donald Tusk warned that the aid can flow, the need for compliance with the relevant conditions. These include the acceptance of the entire agreement by the Greek parliament, which is expected on Wednesday, as well as the quick adoption of a number of agreed reforms. Only then it will be able to collapse the decision to start negotiations.
The agreement on the accession negotiations with Greece will also have to accept the parliaments of several eurozone countries, including Germany and France. In the case of several Eurozone countries will also need parliamentary approval later for a negotiated rescue package.
a key role in the negotiations with Greece played Tusk
According to the “Financial The Times’ key role in bringing about the agreement was to play Donald Tusk. According to the newspaper, on Monday at approx. 6 am German Chancellor Angela Merkel and Greek Prime Minister Alexis Cipras decided that they are not able to reach an agreement and further talks should be removed. The President of the European Council Tusk, however, stopped them before leaving the meeting, saying: “I’m sorry, but this is not possible, you to come out of this room.”
As the daily output of both leaders from the negotiations would lead to ” historic split in the euro area “. After returning to the table discussions agreement was reached after more than an hour.
What envisages assistance program
The three-year aid program for Greece is expected to reach 82-86 billion. Greece will report assets worth up to 50 billion euros into a special fund, and the money from the privatization of the property will go to pay off debt and recapitalize banks (25 billion euros). The document Eurogroup shows that 12.5 billion has to go to pay off debts, and 12.5 billion euros for investment in growth and jobs. The fund will be created and managed in Greece by the Greek authorities under the supervision of European institutions.
In exchange for financial support for Athens to be adopted by July 15 of the Law on the rationalization of the VAT system and expand the tax base, changes in the pension system , the independence of the statistical office ELSTAT and the introduction of automatic spending brake in case of default the primary objectives of the budget surplus.
Until July 22 Greece is expected to adopt the Code of Civil Procedure, which is to accelerate processes, while reducing their costs, as well as provisions implementing the Directive of restructuring and liquidation of banks.
The euro zone also wants to significantly strengthen the reform proposals planned for the future, which presented herself Greece in the request for a new aid scheme. Athens has accomplished, for example. Labor market reforms, ambitious pension reform, enter the recommendations of the OECD on trade on Sunday, periods of sale, ownership of pharmacies and bakeries, as well as to carry out deregulation of certain professions, eg. In ferry transport sector.
Greeks also recommends the continuation of the privatization operator of electricity transmission networks, as well as a significant expansion of the entire privatization program.
The euro zone also declared that it is ready to consider additional measures that would facilitate the handling of the Greek debt, for example. deferment of repayments. Excluded, however, nominal debt reduction. Greece confirmed that repay their debts on time and in full.
According to the text of the agreement Greece has also request support from the International Monetary Fund.
The European Central Bank decided to maintain the financing bank rescue Greek (ie. emergency liquidity assistance – ELA) at the current level, frozen on June 26 at € 89 billion. According to the agency EFE this step is disappointed analysts, who assumed that the arrangements for the next aid package for Greece, the ECB will raise emergency funding limit.
(MPW)
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