Greek Parliament Passes Antipoverty Bill
International creditors had asked Greece to hold off on voting until they assessed budget impact
Greek lawmakers passed an antipoverty bill Thursday despite not having the green light from international creditors on the law, in the latest snag in ongoing negotiations over the country’s bailout.
The majority of lawmakers voted in favor of the bill in Greece’s 300-seat Parliament, marking the first law passed by the leftist-led government since being elected in late January.
The bill provides free electricity and food stamps to low-income households in an effort to offset the impact of austerity Greece has implemented in exchange for rescue aid worth 240 billion euros ($254 billion).
The measures are expected to cost some 200 million euros, and the government says they will be offset by other cutbacks that include cutting spending at ministries and adopting a more transparent system for awarding state procurement contracts.
Greece already has ordered ministries to identify planned cost savings, but the new procurement system remains a work in progress and it is unclear how much of the planned savings will be realized.
Representatives of the European Commission, the European Central Bank and the International Monetary Fund, who are in Athens reviewing progress of the bailout program, had asked that Greece hold off on voting on the bill until they had time to assess its impact on the budget.
In a defiant speech, Prime Minister Alexis Tsipras told lawmakers ahead of the vote that the bill is in the interests of the country and that Greece will push ahead with other moves not approved by international creditors, including the reopening of its state broadcaster.
“This is the first bill in five years that doesn’t take something from the people but will offer them something,” Mr. Tsipras said.
In the hope of finding a political solution, Mr. Tsipras will meet Thursday with German Chancellor Angela Merkel, French President François Hollande, European Central Bank President Mario Draghi, European Commission President Jean-Claude Juncker, andJeroen Dijsselbloem, who heads the group of eurozone finance ministers, after an EU summit in Brussels.
Source: WSJ – Greek Parliament Passes Antipoverty Bill
