Greece asked for $59 billion to help cover its debts until 2018, a review of primary surplus targets in light of the sharp deterioration of its economy, and a reprofiling of the country’s long-term debt. The country has relied on bailout funds since losing access to financing from bond markets in 2010.
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The motion, which sought to authorize the government to use the proposal as a basis for negotiation with worldwide creditors during the weekend, passed with 251 votes in favor, 32 against and 8 voting “present” – a form of abstention – in the 300-member parliament.
Lawmakers of the governing Syriza party in Greece huddled in Parliament in Athens to discuss the latest proposal before a debate in the House scheduled for Friday evening.
A Greek opposition party leader predicted a “large majority” of lawmakers will approve the government’s proposals to creditors in a crucial vote later. But failure to deliver votes from his own government could topple Tsipras’ coalition.
France, Greece’s strongest supporter in the euro zone, rushed to offer praise with President Francois Hollande calling the offer “serious and credible”. “Without ELA emergency funding, the Greek government would have gone bankrupt far earlier and negotiations would have ended months ago”, wrote the economists.
Initial reaction to the package was mixed while German finance ministry spokesman Martin Jaeger said “the outcome of the Eurogroup meeting on Saturday is completely open”.
Representatives from the European Commission, European Central Bank and worldwide Monetary Fund, are now assessing the proposals.
In Greece, government officials were confident their concessions would be accepted by the creditors.
Alternate Finance Minister Dimitris Mardas said the banks would be gradually restored to operation.
As the government inched closer to a deal to ensure Greece doesn’t crash out of Europe’s joint currency, some Greeks adopted a “wait and see” approach.
“I don’t know. The chances are 50-50” for a deal, said Athens resident Omiros Fotiadis.
“There is still no assessment of the Greek proposals”, he said. Germany and many other European countries rule out an outright debt cut, arguing it would be illegal under European treaties.
But some were furious at the deep spending cuts in the proposals.
“If this is Europe, then we don’t want this Europe”, Aristidis Dimoupulos, a marketing professor in Athens, told the Associated Press.
Downing Street said the eurozone had to work with Greece to find a way out of the crisis. “If in this life we’ll be slaves, it’s better to be dead”.
Meanwhile, banks remained closed since the start of last week and cash withdrawals were restricted to 60 euros ($67) per day. All money transfers overseas, including bill payments, were banned without special permission.
“The new measures are suffocating”, said Irini Skordara, a 79-year-old pensioner, one of dozens of pensioners queuing outside a bank to withdraw their pension.
While Tsipras can now vaunt Parliament’s support as a show of domestic resolve to his European counterparts, some of them may need more convincing on the plan itself. Visibly rattled, Energy Minister Panagiotis Lafazanis, who heads the radical Left Platform branch of Syriza and who has railed against further austerity, refused to answer reporters’ questions.
But the plan includes many elements rejected by Greek voters in a referendum last weekend.
Some 8,000 people gathered in Athens ahead of the parliamentary vote to protest against more austerity, police said, although most overwhelmingly want to keep the euro.
Rallies backing and opposing the government were planned in central Athens for Friday evening.
Greece’s new proposal on reforms, needed to secure a third bailout package from its creditors, was received just hours before the deadline for submission was due to expire on Thursday.
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Greece early Friday laid out details of a new bailout plan to save it from the brink of financial collapse, offering a pensions overhaul and tax hikes in return for debt relief and a rescue loan from the eurozone.
