Greece: Tsipras wins parliament’s backing for bailout
Parliament votes in favour of painful reforms put forward by Greek Prime Minister Alexis Tsipras, but will it be enough to secure a bailout from European powers?
Mr Tsipras had to rely on opposition right-wing support to win parliamentary backing for his economic reforms, as several MPs from his Syriza party voted against the measures.
The plans include tax rises and other measures to unlock 54 bn euros in a three-year credit deal that would save Greece from a bankruptcy that would tip it out of the euro zone.
We have to take the best decision for the euro zone Lithuania finance minister
But Germany is sceptical of the plans after five months of stuttering negotiations – it has previously been Greece’s biggest creditor in two previous bailouts totalling 240 bn euros.
A 19-strong group of European finance ministers are due to discuss the plan, but its assent is far from certain.
A spokesman for German Finance Minister Wolfgang Schaeuble would not comment on a newspaper report that he found Mr Tsipras’s proposals inadequate and would oppose further talks – saying only that the outcome of Saturday’s talks remained “completely open”.
Positive response?
German Chancellor Angela Merkel has made clear she does not want to see a “Grexit” that could disrupt the ailing European economy and undermine a supposedly irreversible union. But she faces stiff opposition among her own conservative allies.
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The proposals received a positive response from the “troika” of lenders to Greece: the European Commission, European Central Bank and International Monetary Fund late on Friday.
Along with bullish comments from Athens’ key euro zone ally France, this response had raised expectations that the “Eurogroup” would approve new loan negotiations.
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Leaders including Mrs Merkel and French President Francois Hollande, are due to meet on Sunday, either to endorse the ministers’ decision or, along with other EU leaders, to take steps to contain the fallout from a looming Greek bankruptcy.
Small east European states are most reluctant to pour more money into a country some believe the euro zone would be better off without.
Lithuania’s finance minister said the Eurogroup would judge Mr Tsipras’s credibility.
“We have to take the best decision for the euro zone,” said Rimantas Sadzius.
“We have to evaluate, how constructive and realistic it is … We have no right to blindly borrow taxpayers’ money – we have to be sure they will be paid back”.