Foreclosures, Taxes Cost Coalition An MP

Greek Prime Minister Antonis Samaras’ coalition – his New Democracy Conservatives and partner the PASOK Socialists – got narrow victories from the Parliament on Dec. 21 when lawmakers voted for a new unified property tax that hits farmers, and for a partial lifting of the ban on foreclosures that expires on Dec. 31.
The measures were demanded by the country’ international lenders and Samaras and PASOK chief Evangelos Venizelos had to scramble to mollify would-be rebels, but still lost one when New Democracy MP Vyron Polydoras voted against the bills and was summarily ejected from the party by Samaras.
The Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) insisted on the taxes and end of the moratorium on foreclosures and Samaras obeyed, with both passing with only 152 votes in the 300-member Parliament.
The unified property tax bill drew angry protests from farmers, who will be included for the first time, and led to clashes with riot police outside Parliament. It also incorporates a 100 percent surcharge on property taxes that was added to electric bills in 2011 for what was supposed to be a one-year stopgap but is not set to be permanent.
Before the vote, Polydoras slammed the new, unified property tax, saying he could not accept the levy. “What sort of policy is this when you step on homeowner’s throats?” he said. “Do you expect me to vote for this?”
His ejection leaves the government with only a three-vote majority.  Polydoras was applauded by opposition MPs for taking a stand against the Prime Minister.
Venizelos, who is Deputy Premier/Foreign Minister in Samaras’ government had voiced some dissatisfaction but went along. HIs party, hovering at only 5 percent in the polls, would otherwise be irrelevant.
Government ministers made late changes to make home foreclosures more palatable for coalition deputies. Development Minister Costis Hatzidakis met with PASOK MPs to convince them and he did.
Finance Minister Yannis Stournaras was called into a hearing of Parliament’s finance committee to remove a number of provisions that were attached to the foreclosures bill but which related to a number of other issues, such as the country’s privatization fund.
The foreclosure bill is the most contentious because it will allow banks to confiscate the homes of people who can’t afford to pay their mortgages because of big pay cuts, tax hikes and slashed pensions administered by the government on Troika orders. There would be protection extended – for one year – for those with primary residences valued at up to 200,000 euros ($275,000) and with incomes of under 35,000 euros, ($47,855.)
The major opposition party Coalition of the Radical Left (SYRIZA) said the plan is just a temporary appeasement before the government allows banks to take people’s homes with more than 230,000 said to be in default.
Protesters have also been demonstrating in vain over continued assaults on their income and as the government moves to up the number of public workers who will be fired.