Roundup: Greek MPs approve multi-bill with prior actions to unlock bailout tranche

The critical multi-bill containing the last set of prior actions demanded by Greece's creditors to complete the first review of the Greek third program, unlock the next bailout tranche and open the way to debt relief talks was approved by the majority of Greek legislators on Sunday.

All 153 MPs of the two-partite ruling coalition voted in favor, while 145 lawmakers of the opposition parties voted against.

A total of 298 legislators participated in the televised roll call vote in the plenary, while two MPs were absent.

The controversial legislation introduces a new series of indirect tax hikes and provisions for the sale of nonperforming loans from Greek banks to foreign distress funds.

It also outlines the new privatization fund and the automatic fiscal adjustment mechanism which will be activated in case of deviations from the primary surplus targets in coming years.

During a heated debate ahead of the vote, the left- led government defended the new package of measures as necessary in order to turn page and exit the debt crisis.

The prior actions will ensure further support of lenders and the signing of a new deal on debt relief that will help restore growth, Greek Prime Minister Alexis Tsipras argued, addressing the assembly.

"Today closes a difficult circle for the country and we are taking a final step in the completion of the first evaluation that will mark a new era of creation for Greece, an era that also has its difficulties but also perspective,"the Greek leader said.

"Tonight European leaders are receiving a message that Greece complies with its promises and assumes its share of responsibilities. Tomorrow the other side should also fulfill the commitments undertaken under our agreement. And I believe that this will happen," he stressed, pointing to the May 24 Euro Group meeting.

Speaking in parliament earlier, Greek Finance Minister Euclid Tsakalotos appeared upbeat about a positive decision on the disbursement of the bailout tranche on Tuesday and about the prospects of finding a solution with regard to Greece's debt.

On the other hand, critics of the prior actions said that over taxation instead of structural reforms will "choke off" the average household and entrepreneur, leading to a dead end.

"I have told you several times and I repeat it today. The fundamental problem of Greek economy is not the debt load, but the shortage of reforms, competitiveness, investments and chronic unemployment," main opposition New Democracy party leader Kyriakos Mitsotakis said during his speech.

Opposition parties were in particularly critical against the establishment of the contingency mechanism which they rejected as insulting for Greek people and a "perpetual bailout", as well as in regards to the new "super fund" outlined in the omnibus bill.

The Hellenic Holdings and Property Company (EDIS) will have a lifespan of 99 years with the goal of better exploiting state assets to support growth and contribute to the reduction of the Greek public debt burden.

Under the bill, it will manage assets of currently held by the existing privatization fund HRADF which was founded under the first bailout five years ago, as well as assets currently belonging to the Hellenic Financial Stability Fund (HFSF).

Opponents of the bill criticized the government of "pillaging of public wealth" and binding the next four generations of Greeks.

Cabinet ministers defended the new privatization fund, noting that in contrast to the HRADF, proceeds would no longer go solely to the reduction of the debt but by 50 percent to investments which support growth.

"No to the selloffs of state utilities. No to the selloff of our future," protesters chanted outside the parliament on Sunday ahead of the vote.

Approximately 11,000 people, according to police estimates, participated in the rallies staged by labor unions.

Launching a new wave of strikes in protest of the new package of measures, employees in public transportation held a 48-hour strike over the weekend.

Under the bill, shares of the Athens road transport companies OASA and OSY, the Urban Rail Transport (STASY), Greek railways (OSE), the Hellenic Post (ELTA) and the Athens Olympic Sports Complex (OAKA) will be transferred to the new privatization fund.

Four largest associations representing employers in Greece also rejected the measures in a joint statement.

They said additional taxes such as a VAT hike from 23 percent to 24 percent on a wide range of products and services, which will gradually come into effect from June 1 this year to 2018 will add an unbearable extra burden on the shoulders of consumers and businessmen.

The government estimates that an additional 1.8 billion euros will be generated through the increase of the fuel consumption tax, the tax on tobacco products, electronic cigarettes and imported coffee among others.

As part of efforts to ease the burden on the most vulnerable members of society, Tsipras announced on Sunday the establishment of the Social Solidarity Fund, which will tackle injustices. (1 euro= 1.12 US dollars) Endit