Photo: y ΠΑΣΟΚ, Flickr
Folks, there is a real chance that Greece will not be able to pass a new austerity bill this week, which would mean (in theory) that it won’t get more bailout money, which would mean an imminent default.According to Kathimerini, there are now 4 PASOK (Papandreou’s ruling party) MPs who have signalled their opposition to the measure, at least on some level.
Some are apparently concerned about details, and haven’t come out firmly against the plan. It’s possible some or all could come back into the fold.
That being said, PASOK has 155 seats out of 300 in the Hellenic Parliament, which means that the vote could be down to a margin of 1.
On Friday, MP Thomas Robopoulos came out against the bill.
Now just to war-game things out a little further, you have to ask whether the rest of Europe will let Greece default, even if the measure isn’t passed. After all, the “bailout” is primarily for the sake of European banks and the other PIIGS (both Portugal and Ireland have seen their bonds get hammered in recent days, and confidence in them would likely wane if things hit the fan in Greece). So a failure to vote for austerity would, essentially, be a move to put the ball back in the court of Europe.
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