Greek government lawmakers break ranks ahead of reforms vote

Dissenters increased pressure on Greece’s grudgingly pro-reform governing coalition Thursday, hours before an important vote on measures demanded by bailout creditors. Tsipras’s majority is now down to three lawmakers after two members of parliament – one from the governing Syriza party and one from Independent Greeks, the junior coalition partner – wouldn’t back the bill.

The bill, outlining regulation on tax arrears and home foreclosures, paves the way for the disbursement of €2bn to pay state arrears and a further €10bn to recapitalise Greece’s top four banks.

Finance ministry officials from the euro area are scheduled to assess on Friday whether the bill approved by Greek lawmakers fulfills the conditions for the disbursement of bailout funds. Under the multi-bill passed on Thursday, 25% of homeowners deemed to have low incomes or low home values will be offered protection against foreclosure – a far cry from the leftist-led government’s original promise to protect all Greeks from home repossessions.

As a result, Prime Minister Alexis Tsipras ousted Panagoulis from SYRIZA’s parliamentary group and Independent Greeks leader Panos Kammenos took the same action against Nikolopoulos.

The government had originally sought to protect more than 70 percent of families at risk of losing their homes, while creditors had been willing to exclude no more than 20 percent from seizure.

Stathis Panagoulis and Nikos Nikolopoulos were immediately expelled from the parliamentary groups of SYRIZA and ANEL respectively. He called leftwing Syriza ” a neoliberal and callous left [party] which converts pensions into tips”. “Only if it is combined with a treatment of the red loans and a policy for strengthening employment, the recapitalization of banks can be successful”, Dragasakis said, after noting that non-performing loans were not treated at all by previous governments. “Grexit is still in our courtyard and your policies are threatening to trigger social explosions”, she said.

“Tsipras lies to his MPs, asking them to vote for these measures so as to gain a debt relief”, Vasilis Leventis, president of the Union Centrist’s party, said who then urged Tsipras to resign and establish a new coalition government. The tax will be replaced by a special 5 eurocent tax on each lottery ticket and a tax of 40 eurocents per liter on Greek wine.

The issue has been a major sticking point in talks with lenders.