“Despite the defection of about a quarter of his own MPs – and with a lot of help from the Opposition – Alexis Tsipras won the most crucial parliament vote since becoming prime minister”.
Advertisement
The bill had to pass in order for Greece to start negotiations with creditors on a third bailout worth 86-billion-euro over three years.
Greek PM Alexis Tsipras is focused on completing a bailout deal agreed with the eurozone despite setbacks in a crucial vote to push through tough reforms, his spokesman has said.
The austerity bill triggered a revolt in the governing party and demonstrations in central Athens, one of which briefly turned violent, but was required by creditors as a precondition for starting bailout talks.
However, in a symbolic act of defiance by Greek parliamentarians, the measures were not approved by the July 15 deadline stipulated under the bailout deal. According to Greek media reports, about 30 Syriza deputies may vote against the debt deal and the first set of taxation and pension system reforms.
Finance Minister Euclid Tsakalotos, who took over from Varoufakis the day after the referendum, said the deal Greece reached with its creditors on Monday was the only possible choice.
“I don’t know if we did the right thing”.
Greeks have seen a dramatic decline in living standards since the debt-plagued country lost market access in 2010 and had to impose severe spending cuts in exchange for bailout loans from eurozone countries and the worldwide Monetary Fund.
The leader of the conservative New Democracy party Vangelis Meimarakis said as he entered parliament, “New Democracy MPs…always vote with their conscience and their conscience says Yes to the country’s future in Europe”. The economy has shrunk by a quarter in the course of two previous credit packages and 25 percent of the population are unemployed.
Even if Athens carries out austerity programme it still won’t be able to pay back billions of Euros.
“I’m the last person to beautify an agreement with which I disagree in many of its points”.
Parliament speaker Zoe Konstantopoulou slammed the deal as a product of blackmail, describing the additional poverty it would cause as an act of “social genocide”. The fund said it would not support the new bailout unless the agreement reduced the country’s debt burden.
The European Commission on Wednesday formally backed a controversial proposal to use an EU-wide crisis fund to cover Greece’s short-term cash needs, officials said, setting up a clash with Britain and Germany.
Advertisement
Petrol bombs were hurled at police who used tear gas on the crowd of thousands outside Greece’s parliament.
