Greece deal could jeopardize Tsipras’s governing coalition

Greece deal could jeopardize Tsipras’s governing coalition
PM Alexis Tsipras, left, prepares to chase his coalition around Greece. (Image: EPA via BBC)

[Ed. – It’s not clear what kind of victory the deal will be if Tsipras’s government can’t hang together and enforce it — even assuming he can get it passed with votes from outside his coalition.]

Greece’s dire financial straits meant it had scant leverage to push back against some of its creditors’ most onerous demands. Officials negotiated for hours over a provision that calls for the nation to stash 50 billion euros’ worth of state assets in an outside fund for sale on the private market, with proceeds going mainly to recapitalize Greece’s ailing banks.

Greece has long resisted such measures but found its hands tied. Tsipras relented after creditors agreed to allow the privatization fund to be housed in Greece rather than Luxembourg. And though an even more radical proposal that could have placed Greece in a temporary “time out” from the common euro currency was struck down, its mere existence stunned members of the Greek delegation.

The moves are fostering a deep sense of resentment among Tsipras’s allies and a conviction that Europeans sought to humiliate him. During a pivotal meeting with Merkel, French President François Hollande and European Council President Donald Tusk, Tsipras at one point received a thinly veiled threat that if he walked away and left the euro, Greece risked going it alone geopolitically, too.

Germany bore the brunt of Greek rage. Greece’s defense minister, Panos Kammenos — head of Tsipras’s coalition partner, the Independent Greeks — called the deal a “coup by Germany” and its allies. It remained unclear whether his party would back the deal in Parliament . …

30 members of the ruling Syriza party threatened to resign Monday rather than approve the deal.

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