The government’s intention to lift the temporary ban on the auction of primary residences is more than obvious and is reflected in the rivalry of Minister of Finances Yannis Stournaras and the Minister of Growth Kostis Hatzidakis on the subject.
Mr. Stournaras has the backing of the government on the subject, however Mr. Hatzidakis appears determined to block such a development, even if it could threaten the (recently refinanced) banking system.
Unfortunately for the Prime Minister, an ever-increasing number of MPs are publicizing their intent to vote against the lift on the ban, reflecting the Opposition’s arguments and possibly triggering early elections.
Furthermore the lift on the ban is not amongst the troika-mandated series of prior actions, which makes it even harder for the government to garner support for such a controversial move.
To that end the PM initially approached the Deputy Minister of Growth Thanasis Skordas to establish a set of criteria for a gradual lift on the ban. After the reactions Mr. Skordas withdrew from the plan and Mr. Stournaras was called in.
«Support government line or face early elections»
The Ministry of Growth’s intentions are to present a legislative proposal in November, after all the necessary studies and reports have been conducted, in order to determine the profile of the average borrower and determined the extent of the lift on the temporary ban.
This however would mean that the government would have little room for maneuvers, as the temporary ban expires on the 31st of December. The limited available time could potentially be used to force MPs to support controversial positions, by threatening to call early elections.
One of the likeliest scenarios is to gradually lift the ban, starting on loans that have not been serviceable since 2009, before the debt crisis began. The gradual lift would be annual, so that in 2015 the lift would affect loans from 2010 and so forth.
Further criteria, such as protecting residences up to a certain size or value as well as a ‘growth clause’, could also be introduced to compliment the measure and placate public sentiment.
