People make their way in front of a closed National Bank of Greece branch in Athens October 26, 2014. Roughly one in five of the euro zone's top lenders failed landmark health checks at the end of last year but most have since repaired their finances, the
IN PHOTO: People make their way in front of a closed National Bank of Greece branch in Athens October 26, 2014. Roughly one in five of the euro zone's top lenders failed landmark health checks at the end of last year but most have since repaired their finances, the European Central Bank said on Sunday. Reuters/Alkis Konstantinidis

Greek Prime Minister Alexis Tsipras, despite his success in convincing the European Union leadership for a bail out, is facing more problems back home, as many in his party are angry at the “abrupt surrender” to EU diktat for securing the bail out. They are furious at the PM’s capitulation to German demands for the sweeping austerity packages ever slapped on a euro zone government.

But Tsipras is trying to do his best to convince MPs to back the third bailout offered by eurozone leaders. His problem involves getting four pieces of legislation passed, which include pension and VAT reforms. Defence Minister Panos Kammenos said he will provide only limited backing. The danger is, if the deal fails, Greece's banks will collapse and it has to exit the euro, reports BBC.

The International Monetary Fund already reminded on Tuesday that Greece has slipped into more arrears by missing a debt repayment for the second consecutive month. Greece missed payment of €456m or $500m on 13 July and now owes €2bn, the IMF said.

Party Rebels

Already rebels in the ruling Syriza party and its coalition partner, Independent Greeks party, have indicated that they would not break the election pledges that brought them to power in January. "We cannot agree to that," Independent Greeks leader Panos Kammenos told reporters after meeting Tsipras. "In a parliamentary democracy, there are rules and we uphold them," he said. A meeting of the Syriza parliamentary group is expected to be stormy with Energy Minister Panagiotis Lafazanis and Deputy Labor Minister Dimistris Stratoulis facing disciplinary action over their opposition to the bailout. The parliament speaker Zoe Constantinopoulou is an unflinching left-winger and had defied Tsipras over the bailout. He may create serious procedural obstacles for the EU package.

Abject Surrender

The bailout deal for Greece indirectly seeks much of its sovereignty to outside supervision for 86 billion euro or 95 billion dollars bailout. Already doubts are emerging whether Tsipras can hold his government together. The terms of international lenders, led by Germany want Tsipras to abandon promises of ending austerity. The Greek PM must also see to it that all relevant legislations are passed that will cut pensions, increase value added tax, clamp down on collective bargaining agreements and put in place quasi-automatic spending constraints.

Tsipras has also been asked to spare 50 billion euros of public sector to be sold off under the supervision of foreign lenders. Tsipras, who was elected five months ago, promising to end five years of suffocating austerity. He said he had "fought a tough battle" and "averted the plan for financial strangulation.”

Showing a benign face, over the conditional agreement to Greece over three years, European Commission President Jean-Claude Juncker commented, "The agreement was laborious, but it has been concluded. There is no Grexit.”

(For feedback/comments, contact the writer at k.kumar@ibtimes.com.au)

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