Debt relief goal fades away despite harsh austerity measures

Berlin and Brussels have rejected IMF’s proposals for a significant relief

Suspense continues among ruling party members over the omnibus bill to be tabled today, which will include the prior actions that are still pending so as to reach an agreement with lenders, excluding though the mechanism for automatic cuts.

The omnibus bill that includes mainly indirect taxes of 1.8 billion euros, the establishment of a new privatization fund and arrangements for the performing and non-performing loans, will be the toughest test that SYRIZA’s MPs are called to pass since it violates many of the core beliefs of left.

Finance Minister Euclid Tsakalotos and Alternate Finance Minister Giorgos Chouliarakis will talk to SYRIZA parliamentary group today to inform them on the provisions of the omnibus bill.

Despite though the harsh measures that the government has accepted, it seems that there will be no progress on the debt issue, since Berlin and Brussels have rejected IMF’s proposals for a significant relief. Moreover, it is doubtful if Greece and its lenders manage to reach an agreement in next Eurogroup meeting.