Wednesday, June 24, 2015

Tsipras is now the enemy at home – lanacion.com (Argentina)

ATHENS Greek leftist lawmakers reacted angrily yesterday to the concessions offered by the government of Alexis Tsipras in negotiations on its sovereign debt with creditors.

The Vice President Parliament, Alexis Mitropoulos, the ruling party Syriza, warned that the proposal would not have an easy approval process and cooled optimism about an agreement that Greece does not come into default.

The European leaders received positively the new Athens budget proposal which provides for budgetary adjustments and raise some taxes-as the basis for a possible agreement to unblock the frozen and avoid a suspension of payments aid, which would lead to a Greek exit from the eurozone.

Tsipras, who took office in January promising to reverse years of austerity on a country hit by the recession, must combine the support of all the political branches of Syriza and its creditors to the commitment to materialize.

But several lawmakers expressed outrage at Syriza’s Tsipras offer to raise a series of taxes, in addition to raise pension contributions, measures which threaten to further economic hardship to the Greeks after years of austerity .

“I think it is difficult that we will approve this program,” Mitropoulos told Greek television chain Mega TV. “The Prime Minister must first inform our people why it failed in the negotiations that ended with this result (…) I think that the measures do not conform to the principles of the left. This is social slaughter. They can not accept” warned the Vice President of Parliament

Officials of the three institutions representing creditors of Athens -the European Commission, the European Central Bank (ECB) and International Monetary Fund (IMF) -. are analyzing Greek fund proposals in Brussels to determine whether the new figures will allow the country’s public finances are sustainable.

The creditors may consider that the offer of Greece is not enough and demand more adjustments to reach an agreement this week, as close to the negotiations sources.

If the Greek parliament does not support the latest proposal, Tsipras could be forced to call early elections or a referendum, which would prolong uncertainty in the country.

Athens urgently needs money to avoid default, next week, for a loan of 1.6 billion to the IMF. The nervousness about the situation of banks in Greece led savers to withdraw several billion euros from its accounts in recent days.

With Greece on the brink of bankruptcy, it is unclear whether Members may withdraw their support if Tsipras achieved a deal with the European partners and the IMF. “I think the agreement will be approved by Parliament and ratified by the majority that counts the government,” said Dimitris Papadimoulis, a lawmaker from Syriza in the European Parliament.

“I do not think the main legislators of Syriza want to be responsible for the fall of a leftist government with only five months in office and a prime minister who has 70% of popular support, “Papadimoulis said.

agencies AFP and Reuters .

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