The Greek parliament has approved the draft deal for the $93bn bailout package allowing the deal to be taken to the meeting of European finance ministers in Brussels.
The move saves Greece from a disorderly default on its debts which could have come as soon as next week and helps to cement its membership of Europe’s single currency, but means more hardship for ordinary Greeks.
European Commission (EC) President Jean-Claude Juncker said that the approval of the third bailout by the Eurogroup proved that “Greece is and will irreversibly remain a member of the euro area”.
Despite rebellion in the ranks of Tsipras’ leftist Syriza party, the 400-page text is thought likely to pass through the Athens legislature with the support of opposition parties in a vote not expected until the early hours of Friday.
In an appeal to lawmakers before the vote, Tsipras defended the decision to accept a program that comes at the price of tax hikes, spending cuts and economic reforms, saying it was a choice between “staying alive or suicide”.
As Greece faces a 3.2 billion euro debt repayment deadline on August. 20, approval of the bailout by the eurozone of Friday is critical.
“After the changes in the government and the crises that we had, the cooperation with, let’s say, the changed Greek government is very constructive, very well organised“, Mr Jeroen Dijsselbloem, the Dutch minister who chaired the Brussels meeting, told reporters.
The first tranche of loans will be for 26 billion euros ($28 billion). “There is no chance of that”, lawmaker Makis Voridis said, after parliament approved the latest bailout bill, Reuters reported. “If we don’t find a solution, we will have to do bridge financing”, he said, referring to a short-term loan so Greece can make its next debt payment on August. 20.
“But Berlin opposes writing off any Greek debt, although it is open to the idea of extending grace periods before Athens has to start paying interest and principal on its bailout loans. They have tested the patience of policy-makers and they have tested the patience of our citizens even more“, Juncker said. Lawmakers from the so-called Left Platform of his party refuse to support the continuation of austerity, accusing him of betraying his pledges and the Greek people’s mandate.
Eurozone finance ministers were also discussing the deal.
International Monetary Fund chief Christine Lagarde welcomed the agreement but warned Greek debt had become unsustainable.
Earlier in the morning, the Greek parliament overwhelmingly voted in favour of adopting series of new austerity measures to secure the long-awaited bailout plan.
But Greece is hoping that agreement to the tough measures will garner it some good will with exasperated EU leaders and possibly a degree of debt relief, which some Eurozone ministers have hinted is possible.
source:ifreepress.com
STUDIO 3 NEWCASTLE AUSTRALIA 