After the Eurogroup’s blessing of a new Greek bailout deal, Greece’s short term financial problems appear to be temporarily resolved.
With the first 26-billion-euro installment, the country will be able to pay its debts until mid October and the compromised Greek banks will receive 10 billion euros, which will soon be followed by another 15 billion after a stress test in the fall.
Attention now turns to the country’s uncertain and unstable political landscape.
Various reports claim it is very likely that Greek Prime Minister Alexis Tsipras will ask the Greek parliament for a vote of confidence.
A vote of confidence requires more than half of the parliament’s favor, while the participation of at least two fifths of parliament members is required for a valid voting session. If all Greek parliament members vote, the government will need the support of 151 MPs.
If the government is unable to secure the parliament’s confidence, Tsipras will have to either call snap elections, most likely to be scheduled for the end of September, or form a new government that will garner the support of other parties in parliament.
The current SYRIZA-ANEL coalition government consists of 162 MPs. In the latest round of parliamentary sessions to legislate reforms and austerity measures agreed with international creditors, 42 SYRIZA MPs did not vote in favor of the proposed legislation, which their own party negotiated.
It is unclear where all these 42 MPs would stand come time for a vote of confidence. Certain MPs like former Energy Minister Panagiotis Lafazanis and Parliament President Zoe Konstantopoulou have made clear their complete disagreement with the Prime Minister’s policies, while others have argued that they support Tsipras but not the Memorandum, effectively making their voting position unknown. A vote of confidence occurs through an open ballot and therefore each MP’s vote will be a matter of public record.
Amid this stark rift within his party, Tsipras has been able to legislate bailout prior actions in parliament with the support of New Democracy, “To Potami” and PASOK. Therefore, essentially with the opposition’s support.
Despite this unusual political alignment, Real.gr cited sources claiming that opposing political parties would not vote in favor of the Tsipras administration.
Greece is set to receive 13 billion euros by August 19 to repay various debts. It is widely reported that Tsipras will ask for a vote of confidence after August 20.