Parliament in Athens adopted overnight a set of sweeping reforms after radical left Prime Minister Alexis Tsipras urged them to back the unpopular measures, a condition to begin discussions for its new €86 billion (RM356 billion) bailout.
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According to RIA Novosti sources, Tsipras is nonetheless expected to shake up his administration after 32 lawmakers from the ruling Syriza party voted against austerity measures required by the creditors in order for Greece to receive more financial aid.
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.
Prime Minister Alexis Tsipras, who has almost split his party in the process, insisted he did not agree with the bulk of the draconian deal, that demands tax hikes, a pensions overhaul and privatisation pledges.
Meanwhile, sporadic violence erupted in central Athens as riot police fired teargas and fought running battles with anti-austerity protesters armed with molotov cocktails.
The deal angered many in his own party and other left-wing supporters, with the majority of Greeks voting against similar austerity terms in a referendum on July 5.
“I had specific choices before me: one was to accept a deal I disagree with on many points, another was a disorderly default”, Tsipras said in an impassioned speech to parliament before the vote. A total of 38 Syriza lawmakers abstained or voted against the government.
Petrol bombs were hurled at police who used tear gas on the crowd of thousands outside Greece’s parliament.
The statement did not make any reference to the bridge financing that Greece needs to make payments to the European Central Bank and others next week, before it starts talks on a new package. His deputy finance minister resigned as a matter of principle, and 40 of his MPs did not vote for the measures.
His Interior Minister, Nikos Voutsis, said that a snap election could be held in September or October, “depending on developments”.
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The European Commission has proposed giving Greece 7 billion euros in loans from a special fund overseen by all 28 EU nations so it can meet its upcoming debts.
