Draft multi-bill released. Vote on Sunday

This is definitely the biggest test for the cohesion of the coalition government since the PM unilaterally closed state TV in June 2012, causing a mini government crisis. The so called “multi-bill” containing liberalization measures in many professions, agreed upon with the Troika auditors after months of agonizing negotiations, was finally released today.

It is a do-or-die bill for the fragile government, facing opposition from many majority MPs who refuse to offer their consent to certain provisions concerning milk, taxis and other structural reforms. The multi-bill is presented in just three distinctive articles, in an attempt by the government to squash reactions and manipulate majority MPs to the much needed “yes” vote.

The first article contains general provisions, including the dispensation of the 450 million euros from the primary surplus to low income taxpayers, the second contains the bank recapitalization provisions through the Hellenic Financial Stability Fund and the third deals with tax reforms.

The most controversial structural reform provision, the milk regulation, is in the first article, which means that if it is voted down, apart from its majority, the government loses its biggest campaign asset, the distribution of the primary surplus.

Concerning the milk regulation, the bill offers two distinctions: “day's milk” (as in fresh, with a 5 to 10 day duration) and “long term” (with a longer duration). The main reason for the parliamentarians' reactions has to do with the fact that imported milk can also be classified as “day's milk” and thus become competitive to the locally produced batch. A last minute change in the provision sees Greek milk coming in the supermarkets with the Greek logo, so that consumers can make the distinction.

MPs have four days to read the “multi-bill” carefully, before voting on it on Sunday, with the parliament debate starting on Friday. The rush is on account of the tight schedule. If the bill doesn't pass by Sunday, Finance minister Yiannis Stournaras will not be able to claim the 11 billion euros installment of the EU loan in next Tuesday's Eurogroup meeting.