Greece’s PASOK party on Monday gave its strongest hint yet that it intends to provide the support the government needs to get cuts demanded by foreign lenders approved in parliament.
Athens has been locked for months in talks with its European Union and International Monetary Fund lenders on a package of 13.5 billion euros in cuts and tax measures.
A final agreement to secure aid to save it from bankruptcy has been held up by the refusal of the Democratic Left party, the smallest partner in the three-party coalition, to back some private-sector wage cuts included in the package.
But the Socialist PASOK, the second-biggest coalition partner, will not be swayed by the Democratic Left’s refusal, a senior party official said ahead of a formal decision expected at a meeting of party lawmakers on Tuesday. The party has so far been sharply critical of labour reforms but has not explicitly said if it will vote for or against the measures.
“Our stance does not depend on what the Democratic Left will do,” the official told reporters on condition of anonymity.
“We will safeguard political stability and stick to our strategy of safely exiting the crisis,” the official added, in the clearest suggestion so far that PASOK will stick to the deal that Prime Minister Antonis Samaras has agreed with lenders.
Even so, any vote against the package by the Democratic Left would undermine the already fragile coalition and perhaps tempt other lawmakers to defect and vote against unpopular measures.
Several PASOK deputies have already sought concessions over labour reforms and privatisations and one warned that he might vote against the measures.
(source: Reuters)
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