Greek Parliament passes 2015 budget as leaders clash

Series Title
Series Details 08.12.14
Publication Date 08/12/2014
Content Type

The Greek Parliament approved the proposed budget for 2015 in Athens on the 7 December 2014. The Greek government forecast that, for the first time in a number of years, there would be no deficit and 2.9% growth in the economy.

Prime Minister Antonis Samaras saw the the budget as a sign that Greece was approaching an end to 'an era of forced bailouts'.

As the budget was approved, anti-austerity demonstrators protested outside the Greek Parliament.

However, representatives of the Troika (European Commission, European Central Bank and the International Monetary Fund) who had supervised the bailout packages for Greece in the preceding years suggested that the budget projections were over-optimistic.

Eurozone Finance Ministers debated the Greek situation in Brussels on the 8 December 2014. They agreed to extend Greece's bailout programme by two months, in the context of the political challenges facing the Greek government. The Greek government brought forward presidential elections to the 17 December 2104, to stave off having to hold a general election. Polls suggsted that the main opposition, the radical left Syriza party, would easily emerge as the winner in a general election after the severe austerity the Greek people had endured over six years.

[On 6 November 2014 the Eurogroup ministers had discussed the follow-up to Greece's economic adjustment programme. They supported granting Greece a precautionary credit line.

In the light of fragile market sentiment and challenging reforms in the pipeline, ministers strongly supported a precautionary credit line to be extended to Greece. This could be done through a European Stability Mechanism Enhanced Conditions Credit Line (ECCL) once the current programme has ended.

The credit line would support Greece's efforts to regain full market access and build upon the achievements of the current programme. The details of the credit line and attached conditions would be determined in the coming weeks on the basis of the final review of the current programme. Ministers agreed that the IMF should continue to be involved].

Source Link Link to Main Source http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_08/12/2014_545225
Related Links
Deutsche Welle, 08.12.14: Greek lawmakers pass budget unpopular with troika and unions http://dw.de/p/1E0cH
Kathimerini, 07.12.14: [Analysis]: Athens, Schaeuble made IMF stricter http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_07/12/2014_545222
EUObserver, 08.12.14: Eurozone ministers face new Greek budget battle http://euobserver.com/political/126823
Eurozone: News, 06.11.14: Eurogroup supports precautionary credit line for Greece http://eurozone.europa.eu/newsroom/news/2014/11/eurogroup-supports-precautionary-credit-line-for-greece/
European Commission: DG Economic and Financial Affairs: Financial assistance to EU Member States: Greece http://ec.europa.eu/economy_finance/assistance_eu_ms/greek_loan_facility/index_en.htm
ESO: Background information: The Greek debt crisis: Key sources http://www.europeansources.info/record/the-greek-debt-crisis-key-sources/
Euronews, 08.12.14: Greece passes 2015 budget plan against backdrop of protests http://www.euronews.com/2014/12/08/greece-passes-2015-budget-plan-against-backdrop-of-protests/
IMF: IMF and Greece https://www.imf.org/external/country/grc/
The Guardian, 07.12.14: Greece’s MPs vote on budget opposed both by protesters and creditors http://www.theguardian.com/world/2014/dec/07/greece-vote-budget-protesters-austerity-eu
Imerisia, 06.12.14: Only united can Greece escape the crisis (via Euro|Topics) http://www.eurotopics.net/en/home/presseschau/archiv/aehnliche/archiv_article/ARTICLE154915-Only-united-can-Greece-escape-the-crisis
Eurozone: News, 08.12.14: Eurogroup statement on Greece http://eurozone.europa.eu/newsroom/news/2014/12/eurogroup-statement-on-greece/
EUObserver, 09.12.14: Greece gets two more months to exit bailout http://euobserver.com/economic/126832
BBC News, 09.12.14: Greece to hold key presidential vote two months early http://www.bbc.co.uk/news/world-europe-30389856
Deutsche Welle, 08.12.14: Greece and creditors disagree on austerity course http://dw.de/p/1E0mF
Kathimerini, 08.12.14: Gov’t calls snap presidential poll for December 17 http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_08/12/2014_545248
The Guardian, 09.12.14: Antonis Samaras brings forward date of presidential poll in Greece http://www.theguardian.com/world/2014/dec/09/antonis-samaras-greece-presidential-poll-syriza-party
European Commission: DG Communication: RAPID: SPEECH/14/2483: Commissioner Moscovici's remarks at the second press conference of the Eurogroup http://europa.eu/rapid/press-release_SPEECH-14-2483_en.htm
Blog: Open Europe, 09.12.14: Was the Greek government right to call a snap Presidential election? http://openeuropeblog.blogspot.co.uk/2014/12/was-greek-government-right-to-call-snap.html
EurActiv, 09.12.14: Greece prepares for snap elections http://www.euractiv.com/sections/elections/greece-goes-polls-310688
EurActiv, 09.12.14: Greek PM names former EU commissioner as presidential nominee http://www.euractiv.com/sections/euro-finance/greek-pm-names-former-eu-commissioner-presidential-nominee-310686
Il Sole 24 Ore, 10.12.14: Samaras faces Europe with a vital question (via Euro|Topics) http://www.eurotopics.net/en/home/presseschau/archiv/aehnliche/archiv_article/ARTICLE155060-Samaras-faces-Europe-with-a-vital-question

Countries / Regions