The Greek parliament has approved controversial reforms of the civil service and tax administration, opening the way for mass dismissals of state employees in return for a €6.8 billion aid disbursement by international lenders.
The legislation was passed after the governing coalition secured a narrow majority in 15 separate votes on key clauses in the bill. The centre-right New Democracy party and Pan-Hellenic Socialist Movement (Pasok) together control 155 seats out of 300, but won support from independents in several of the votes. One Pasok legislator broke ranks, voting against the axing of the 3,500-strong municipal police force.
The governing coalition is committed to sacking 15,000 civil servants by the end of 2014 under the bailout terms. The legislation was passed hours before Wolfgang Schäuble, the German finance minister, was due in Athens on a one-day visit to show confidence and urge the government to stay the course on structural reform. The vote came after the governing coalition made last-minute changes to the 108-clause bill to prevent defections by dissident lawmakers.
Yannis Stournaras, the finance minister, agreed to suspend payment of €80 million in compensation for 2,600 workers who were sacked at the state broadcaster ERT last month, following complaints by a rightwing faction in New Democracy.
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