Greek government takes losses in home foreclosures vote


(MENAFN- AFP) Greece's leftist government narrowly pushed a bailout reform vote through parliament Thursday, but saw its majority dwindle after axing two lawmakers who refused to support a home foreclosures bill.

The defections did not derail the vote as 153 government MPs in the 300-seat chamber still approved the bailout legislation.

But the government's parliamentary majority was cut back from 155 to 153 lawmakers after the two dissidents were ejected from their respective parliamentary groups.

Government coalition lawmaker Nikos Nikolopoulos voted against the bill, arguing that the government had broken its promise to protect homeowners.

"We promised not to let a single home fall into banker hands, and fewer taxes. We did none of the above," said Nikolopoulos, who was removed from the parliament group of the nationalist Independent Greeks party that is part of the ruling coalition.

Another lawmaker, Stathis Panagoulis of the ruling Syriza party, was absent from the vote and was similarly ejected from the party's parliamentary group.

Former government spokesman Gabriel Sakellaridis, a lawmaker until Thursday, was earlier ordered to resign over reports he planned to boycott the vote, Prime Minister Alexis Tsipras' office said.

Since Sakellaridis handed over his seat and was replaced before the vote, his resignation does not count as a seat lost.

The bill introduces harsher rules on home foreclosures, and a new tax on wine.

Junior finance minister Tryfon Alexiadis said the tax will be set at 15 cents per 750 millilitres and will also affect imported wines. Exported wines are exempted.

Greece and its international creditors this week reached a hard-won compromise to protect around 60 percent of indebted households from having their primary residence seized.

The government had originally sought to protect more than 70 percent of families at risk of losing their homes, while creditors had been willing to exclude no more than 20 percent from seizure.

"There was a very tough negotiation. We won on some issues and lost on others," Finance Minister Euclid Tsakalotos told the chamber.

After storming to power at the beginning of the year on a programme to free Greece from the restrictions of bailout programmes, Tsipras in July accepted a three-year, 86-billion-euro ($93-billion) rescue deal with strict conditions of further cutbacks.

Greece hopes to receive 12 billion euros from the bailout on Friday, including 10 billion to recapitalise its top banks.

Tsipras in September won a fresh election triggered by the bailout deal, calling the rescue package a "painful compromise" and a "tactical retreat" that enabled the country to avoid bankruptcy and stay in the euro.

As part of the agreement, Greece is set to introduce new pension cuts next to keep its shaky retirement system viable.

Officials have hinted that pensions above 1,500 euros ($1,600) will be slashed.


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