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Troika Back in Athens

The Troika is expected in Athens tomorrow to continue negotiations on a number of thorny issues that have held back the disbursement of a 1 billion euro aid tranche that has been delayed for months.

The lenders' representatives are expected to pressure the government on the issue of freeing up mortgage foreclosures, the liquidation of defense related companies, and the single property tax.

At this point the government has already received an ultimatum from Brussels that they will not accept any one sided legislative resolution for the protection of first homes from mortgage foreclosures. However, the government is facing the end of a moratorium on protection of first homes from foreclosures at the end of the year and any extension of this will require new legislation.

The issue is also a red line for many mps that fear voters will shy away from them in future elections if they consent to a lifting of the moratorium. This raises the specter of the government falling.

The other issue, that of the defense firms, is easier to sell to most mps but has a right-wing tail to it, and their dissolution would create reverberations in the more “nationally-minded” voters of the governing coalition, as well as the armed forces and labor unions.

Meanwhile, some of the media and opposition parties discount all the goings on of the last few days with rumor mongering, tweets, emails, and social media leaks about the intentions of Troika and government as theatrical shenanigans.

However, it seems the end of the tether has been reached and despite encouraging statements from European quarters the government is in for a tough grilling and some painful decisions that won't easily wash with the Greek people.

With Mr. Stournaras coming back from the eurogroup all chewed up because of the lagging in implementing structural reforms, and having said that negotiations will last for a week before a return of the Troika in January, the government will be hard pressed to find a solution satisfactory for all, if it wants the 1 billion euros before year's end, and progress towards the next tranche.