Greece: it’s unsustainable

Michael Roberts Blog

So the Greek parliament has approved the terms of the Memorandum of Understanding (MoU) with the Euro credit institutions for a third bailout deal valued at €86bn over three years (Greece MOU).  The terms of the bailout funding commit the Greek government to a new round of austerity measures, including pension cuts, tax increases, a ‘fire sale’ of state assets, a reduction in labour rights and an end to minimum wage rises and a reversal of public sector re-employment.

No wonder about 32 Syriza MPs voted no to the deal and another 11 abstained.  That means that the Tsipras government would not command a majority in parliament in any confidence vote if that rebellion was repeated.  Tsipras plans an emergency Syriza conference in September and then will probably call a general election for the autumn.  That adds a new political uncertainty to the implementation of this deal.

But…

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