Greek MPs have passed a series of painful new austerity measures into law aimed at saving the country’s economy from collapse.
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The Eurogroup on Thursday agreed to offer Greece a three-year grant from the European Stability Mechanism (ESM), following the Greek parliament’s approval of austerity measures demanded by creditors earlier in the day.
Greece’s Prime Minister Alexis Tsipras delivers a speech during a parliament meeting in Athens, Thursday, July 16, 2015.
Large numbers of Syriza politicians are nearly certain to vote against the package, though the Bill is expected to pass with support from pro-European opposition parties.
Petrol bombs were thrown during the protests in Athens (Reuters) numerous mask-wearing protesters carried wooden bats and pieces of smashed paving stones, in the worst clashes seen since Prime Minister Alexis Tsipras’ left-wing government was formed six months ago.
The measures were approved by 229 lawmaker in the 300-seat parliament.
But the raft of consumer tax increases and pension reforms along with free-market reforms contradict the core policies of Tsipras’ left-wing Syriza party.
And Syriza’s hardline leftists, lead by Energy Minister Panagiotis Lafazanis, were reported by Greek media as braced to vote against the measures while calling for a return to the drachma.
“We do think there are a number of solutions that could be found-our objective here is the principle that British taxpayers’ money should not be put on the line for a financial package for the eurozone“, a spokesman for Prime Minister David Cameron said.
Riot police used tear gas to push back dozens of hooded protesters and secure the area in front of the parliament building on Wednesday after the demonstrators’ Molotov cocktails set ablaze parts of Syntagma square in central Athens.
On Tuesday, Tsipras said he was forced to choose between the tough terms proposed by the global lenders and bankruptcy that would be followed by Greece’s exit from the Eurozone.
But he said the country had no other choice if it wanted to stay in the euro.
Greece must pay the European Central Bank a huge debt payment of 4.2 billion euros as early as Monday, and is in arrears to the International Monetary Fund.
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Eurozone nations are giving Greece a bridge loan worth 7 billion euros to pay off some very pressing debts.
