The Euro has fallen to a two-month low against the US Dollar and slumped to a one-month low against the Pound due to renewed uncertainty over the Euro crisis as Greece faces an important parliamentary vote later today.
Greek politicians are set decide whether to endorse embattled Prime Minister Antonis Samara’s latest austerity measures. A Yes vote will see the bill enacted, and Greece receiving the latest round of much needed bailout funds. A No vote would see the bailout funds not being granted, and could lead Greece to bankruptcy by the end of the year. Such a situation will no doubt lead to mass unrest and shake confidence in the Euro.
Government officials are hopeful that the bill will receive enough support to push it through with 153 and 157 deputies expected to throw their support behind the measures. Coalition member the Democratic Left has refused to support the bill citing their opposition to the troikas proposed labour reforms. Should Democratic Left fail to support the measures, there is a possibility it will reject the budget, which will be voted on late Sunday. This would likely lead to the party quitting the coalition.
The vote is set to be marked by a number of public demonstrations on the streets of Athens, with a large two-day strike due to begin on Tuesday.
Prime Minister Antonis Samaras attempted to rally public support behind the unpopular programme yesterday, telling his party that Greece’s future depended on it remaining in the Eurozone.
Samaras warned members of his New Democracy party:
“We must save the country from catastrophe; if we fail to stay in the euro nothing will make sense. As soon as the new measures are passed and we get the critical aid tranche, liquidity will start again to feed businesses and households, uncertainty will end, sentiment will change and the fear of a return to the drachma will disappear.”
Samaras is expected to win, narrowly. However last week’s defection by a coalition MP highlighted just how unpopular the package is…and other lawmakers may also rebel in the days ahead.
As of 10:40 am
The Pound to Euro exchange rate is currently trading at 1.2494
The Pound to US Dollar exchange rate is currently trading at 1.5976
The Pound to Australian Dollar exchange rate is currently trading at 1.5444
The Euro to US Dollar exchange rate is currently trading at 1.2786
The Euro to Pound exchange rate is currently trading at 0.8001
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