Today, the German Bundestag will vote to approve the latest Greek bailout deal. The probability is that the endorsement of the 86 billion euro package will go through. However, it is becoming harder to persuade German taxpayers that Greece is the country that is worth helping.
There is a growing opposition even in Angela Merkel’s own party, which she will need to persuade for the bailout approval. With the European project under threat, Greece exiting the Union could cause a further domino effect.
After the Greek Parliament approved the new bailout terms on Thursday, Finland’s parliament followed suit yesterday. Several other countries are expected to raise their voice on the subject within the next few days.
Greece urgently needs to receive financial aid, as the due date for the 4.2 billion euro repayment to the European Central Bank is coming on Monday. In addition, the installment in arrears to IMF, amounting to about 2 billion euro, has to be repaid as soon as possible.
In the meantime, the European Central Bank has decided to raise interim emergency lending to the Greek Banks in order to keep them afloat. Doubts, however, remain as to whether the cash-strapped country will be able to fulfill its obligations under the new agreement.
The International Monetary Fund has also expressed its doubts regarding the subject, saying that unless significant haircuts on the Greek debt occur, it will be impossible for the country to recover.
The Greek Finance Minister himself has constantly noted that he does not believe in the new bailout deal, and signed it only because there were no other options. He has consequently lost support within his SYRIZA party, as well as of many Greek citizens, who felt betrayed by the minister not fulfilling his election promises and accepting further austerity measures, which some believe will suffocate the fragile Greek economy.