Advertisement

Greeks back new debt plan

Greek prime minister Alexis Tsipras defends the painful bailout proposals. Photo: AAP

Greek prime minister Alexis Tsipras defends the painful bailout proposals. Photo: AAP

Greek Prime Minister Alexis Tsipras has won backing for harsh reform proposals aimed at obtaining a new international bailout.

The Greek parliament has voted overwhelmingly in favour of authorising the left-wing government of Tsipras to negotiate with international creditors on the basis of a reform program unveiled this week.

In a late-night session of parliament, Mr Tsipras and finance minister Euclid Tsakalotos rallied support for the plan.

• Debt is a Europe-wide crisis, not just a problem for the Greeks
• Greece plan needed by Thursday: EU
• ‘No extra money for you’

A total of 251 voted “Yes”, 32 voted “No” and eight “Present”, while nine deputies were absent.

In a statement issued after the vote in parliament, won with the help of pro-European opposition parties, Mr Tsipras said he had a “strong mandate to complete the negotiations to reach an economically viable and socially fair agreement”.

A number of leftist members of the ruling Syriza party, including the speaker of parliament Zoe Constantopoulou and energy minister Panagiotis Lafazanis, called “Present” — in effect abstaining from the vote in a sign of their opposition to the mix of tax hikes and spending cuts it included.

“The government is being totally blackmailed to acquiesce to something which does not reflect what it represents,” Ms Constantopoulou said.

However, despite the dissidents there was never any danger to the package.

Mr Tsipras made no mention of rebels within his own party, but said his focus was on completing the negotiations.

“The priority now is to have a positive outcome to the negotiations. Everything else in its own time,” he said.

Mr Tsipras admitted mistakes had been made during negotiations with European creditors and conceded the austerity measures included in the third bailout proposal were harsh and that they did not match his party’s election pledges.

Previously Mr Tsipras had vowed “concrete proposals, credible reforms, for a fair and viable solution” in his bailout request for billions of euros, the third plan Greece has asked for in five years.

Eurozone finance ministers prepare to consider bailout

Some eurozone nations, led by Germany, have remained sceptical about Greece meeting austerity conditions attached to the loans, especially after Greeks, in a referendum, backed Mr Tsipras’s past rejection of tough terms on its last bailout.These nations refuse to study debt relief or restructuring for Greece until it shows a commitment to reforms.

Experts from the European Commission, European Central Bank and the International Monetary Fund spent Friday reviewing the Greek case for aid and the proposals for economic reforms that will be conditions for any loans.

Euclid Tsakalotos, the mild-tempered professor appointed as Greece’s new finance minister.

A person close to the matter said EU and IMF officials gave eurozone governments a positive initial assessment of Greece’s request for a new bailout.

The positive evaluation, along with a conclusion that Athens needs a total of some 74 billion euros to meet its obligations, will form a key part of discussions among eurozone finance ministers when they meet in Brussels today.

Greek finance minister Euclid Tsakalotos said Friday he believed “many” of his country’s demands for debt relief will be accepted by eurozone ministers at Saturday’s meeting.

People who know Mr Tsakalotos say he has strong negotiating qualities, which will come in handy as Athens heads back into talks with creditors.

But after the jubilation in Athens on Sunday following the resounding rejection of further austerity in a referendum, there was bitterness that the Greek parliament was asked to accept a strikingly similar package of measures.

 

Stay informed, daily
A FREE subscription to The New Daily arrives every morning and evening.
The New Daily is a trusted source of national news and information and is provided free for all Australians. Read our editorial charter
Copyright © 2024 The New Daily.
All rights reserved.