Europe Economy

Greek austerity vote: What to look out for

Nefeli Agkyridou , Special to CNBC

The stakes for Greece and its left-wing prime minister Alexis Tsipras couldn't be higher. After the weekend's marathon euro zone talks, Greece's parliament will meet Wednesday to pass a set of swingeing austerity and reform measures.

Read More Live Blog: Crunch time in Greece as Tsipras eyes crucial vote

Only then will it be allowed to enter talks for a much-needed third bailout. Fail and the country will be locked out of negotiations and pushed into bankruptcy. CNBC takes a look at the crucial vote.

What’s up for vote?

Greek Prime Minister Alexis Tsipras
Alkis Konstantinidis | Reuters

Four pieces of legislation will have to be passed: a VAT increase, the extension of shop opening hours to include Sunday, a broadening of the tax base and a law to ensure the independence of the national statistical service of Greece (ELSTAT). Only once the Greek parliament has voted through all four laws, will other euro zone countries debate the agreement.

Will the vote get through?

The vote is expected to pass, as opposition parties New Democracy, Pasok and To Potami -- a total of 106 members in parliament -- have said they will support any deal. A majority of 151 lawmakers is required to pass legislation through the 300-member parliament.

But "the issue will be how many dissidents Tsipras will have from his own party," Paschos Mandravelis, political commentator at Greek newspaper Kathimerini told CNBC. Around 30 Syriza lawmakers are expected to vote down the bill.

Read More IMF: Greece may need 30 years to recover

A risk that Tsipras is facing is that some Syriza members might resign over the vote but refuse to give up their seat, thereby weakening the government majority.

Tsipras' coalition partners, the Independent Greeks, are expected to approve the deal, but the party's spokeswoman told Greek state TV on Tuesday that there are limits to their support. The Golden Dawn and the Communist party will not give their support.

Who should we keep an eye on?

Left-wing hardliners within Syriza have been refusing to make concessions. The most influential has been the Minister of Productive Reconstruction, Environment and Energy, Panagiotis Lafazanis.

"This deal is unacceptable. It might pass from parliament, but it won't pass from the people, who will cancel it with their unity and fight", he wrote in a statement posted on his ministry's website on Tuesday. One of the state-owned businesses the creditors have demanded be sold off, the Independent Power Transmission Operator, is under his ministry's jurisdiction.

Parliament speaker Zoe Konstantopoulou has proved to be a thorn in the Syriza government. Some are even afraid she might hijack the procedure: The speaker is not explicitly obliged to schedule government bills for a vote. In that case, a motion of censure might be launched against her. This could throw the whole timetable into chaos as the vote to oust her could take up to three days.

What do the ordinary Greeks think?

After a resounding 'No' vote at last week's referendum on a deal suggested by Greece's creditors, some voters were disappointed to see an even tougher agreement on offer. The public sector workers' union has called for a 24-hour strike on Wednesday.

One of the measures required by the Greek government is to overturn some of the acts it has already introduced – such as the rehiring of the Finance Ministry's cleaners and the Greek public broadcaster's (ERT) employees.

What's next for Syriza and the government?

There are even more reform and austerity bills to come after Wednesday's vote. A government reshuffle seems unavoidable at this stage. Calls for a government of national unity have been declined at the moment by Tsipras, while the Independent Greeks have said they will not partner with the opposition parties. Another alternative could be fresh elections.

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