Government crises brew for Greece AND Germany with latest bailout proposal

Government crises brew for Greece AND Germany with latest bailout proposal

[Ed. – As, meanwhile, the IMF kicks the can down the road on its all-important commitment to the deal, postponing a decision until deliberations “in the fall.”  This is not good.  It’s not clear Merkel can pull a rabbit out of the hat on this one.]

Greek MPs are poised to hold a vote of confidence in the government of Alexis Tsipras after Leftist party rebels deserted the prime minister over the punishing terms of a third international bail-out agreement.

Syriza’s energy minister Panos Skourletis said it was now “self evident” that parliamentarians would decide on whether or not to continue supporting the government after a “deep wound” had been inflicted on the ruling coalition.

Lawmakers voted to ratify a 30-page “Memorandum of Understanding to keep the country in the eurozone for the next three years on Friday.

But the terms of the deal, which roll back a number of key pledges from the anti-austerity government, have split the ruling party. Mr Tsipras failed to get the backing of at least 120 of his own MPs, a constitutional threshold that could oblige him to trigger a vote in his leadership. …

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Collapsing political support in Greece comes as a host of eurozone parliaments are set to vote on a deal to release up to €86bn to the near-bankrupt country this week.

Chancellor Angela Merkel is facing the biggest domestic rebellion in her 10 years in office over the aid package.

More than 60 of her Christian Democrat MPs rejected restarting talks over a new Greek rescue in an initial vote in July. This insurrection is set to mount when the package is put before a final parliamentary vote on Wednesday, according to a key ally of the German premier. …

Continued financial aid from the IMF has been a key condition for Germany, which will be the biggest single contributor to the bail-out. Ms Merkel…has been forced to cancel trips to Italy and Brazil in a bid to convince her lawmakers to back the deal…

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