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(Image Source: euronews)
BY LYNDSEY GARZA AND EMILY ALLEN
A new government coalition formed by Greece’s three leading political parties will end months
of uncertainty without an official elected government. ITV has more on the new government’s
plan.
“The leader of the Pasok party there has confirmed that they have struck a deal with
the New Democracy party who won Sunday's vote. They say they plan to renegotiate the country's
bailout terms.”
The Democratic Party of the Left will also join the coalition. An analyst for The New
York Times says if the government survives this coalition and the bailout agreement,
it will take significant change and cohesion from the three parties...
“While New Democracy and Pasok have enough members, barely, to form a majority in Parliament,
that coalition is not likely to last long without other support, particularly from the
Democratic Left Party.”
The Democratic Left’s leader has criticized parts of the bailout agreement, like the demand
to cut minimum wage, calling the agreement a decimation to society. A correspondent for
BBC points out — Greece’s national political problems are playing out on global markets.
“Greece has become like the first domino in the line. Uncertainty here ripples forward
to other vulnerable economies in the Eurozone. That’s why there is so much external pressure
on Greece to create a stable government.”
All three parties agree to stop pension, salary and minimum wage cuts to ease further financial
burden. The leader of the New Democracy tells CNN he hopes to build a government of “parties
that believe in the euro” — a step all three parties back.
“The vote was widely seen as a referendum on whether Greece should remain tied to the
euro, the currency used by 325 million people across 17 countries in Europe. The possibility
of a ‘no’ vote roiled world markets, with some analysts warning that the collapse of
the euro would cost $1 trillion.”
The three party representatives have not found common ground on every issue. Plans to unify
the country’s property taxes into a levy, raise low pensions and lower the top personal
income tax rate are divided issues. A correspondent for Al Jazeera says other countries are anxious
for Greece to work out its financial burdens...
“It’s not clear what concessions other European governments would make. What is clear
is that the Greek people face years of economic hardship under any circumstances.”
European finance ministers are slated to meet this week to discuss a possible two-year extension
on Greece’s government bailouts. This arrives at a crucial time for the country — which
is in its fifth year in recession.