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21 Jun 2013
Greek government shaken by coalition partner pullout
FXstreet.com (Barcelona) - Greece has once again fallen into political turmoil, as the Democratic Left party decided to pull out of PM Antonis Samaras's coalition government on Friday, in disagreement over the closure of state broadcaster ERT last week. The situation in the country has become even more uncertain due to earlier rumors that the IMF is planning to suspend bailout payments to Greece.
Officials from Samaras's conservative New Democracy party and the socialist PASOK agreed late on Thursday that ERT should resume transmissions and that 2000 of its 2600 workers should be rehired. The Democratic Left however demanded rehiring all of the dismissed employees.
The Democratic Left is the smallest of the three-party coalition, so its withdrawal does not mean that Samaras's government will collapse. Nevertheless, it will be left with a slim majority of 153 seats in the 300-seat Parliament.
Fears that political instability in Greece will intensify were further heightened on Thursday by rumors that the IMF is considering suspending bailout payments to Greece as soon as next month, unless the country solves the 2 billion euro funding gap for 2013.
Officials from Samaras's conservative New Democracy party and the socialist PASOK agreed late on Thursday that ERT should resume transmissions and that 2000 of its 2600 workers should be rehired. The Democratic Left however demanded rehiring all of the dismissed employees.
The Democratic Left is the smallest of the three-party coalition, so its withdrawal does not mean that Samaras's government will collapse. Nevertheless, it will be left with a slim majority of 153 seats in the 300-seat Parliament.
Fears that political instability in Greece will intensify were further heightened on Thursday by rumors that the IMF is considering suspending bailout payments to Greece as soon as next month, unless the country solves the 2 billion euro funding gap for 2013.