Greek lawmakers convened in Athens today – seemingly set to approve a new set of austerity packages in order to secure a second bailout disbursement.  The 130 billion euro payment would help the Greek government meet a 14.6 billion euro obligation in the end of March and clear the path for recovery.

However, the new package hasn’t come without it’s troubles.  Publicly, the new and harsher measures have drawn protests – with tens of thousands reported to have taken to public squares in protest.  Privately, politicians have revolted, leading several leading politicians to leave the coalition government in protest of the new measures.  Interim Prime Minister Papademos has already lost a smaller party from the coalition with larger threats of defection from both the socialist PASOK party and the New Democracy party.  Although defections were set to take place before the vote, existing members from both parties are still expected to hold a majority approval for the new 3.3 billion euros in cuts this year alone.

Given the resolve and repeated attempts at the drawing board, it is highly likely that the measures will pass and go into effect soon.  Policymakers threatened by the possibility of bankruptcy and a Eurozone exit are willing to compromise on more than several of their demands, backing down to greater demands from the Troika – and namely German policymakers.

Current measures are set to include already reported 20% reductions in minimum wage and 300 million euros in pension cuts.

The news is especially key ahead of tonight’s foreign exchange market weekly open.  With the deadline set for midnight tonight, a failure to pass the measure could lead to another decline in the euro at the open and into Monday’s US open.

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