Greek parliament passes reforms needed for European Union bailout talks

Tsipras also said that those who support the country’s exit from the euro or handing so-called IOUs to pensioners instead of their pensions “should come out and say it, instead of hiding behind the safety of my signature”.

Discussions over the details of the bailout program, which will involve economic targets as well as potential debt relief for Greece, should begin “as swiftly as possible”, according to the European Union’s executive Commission.

The Greek government is working with a deadline of August 20, when Athens owes another large debt payment to the European Central Bank (ECB).

The tough reform package sparked five hours of fiery debate on Wednesday night, with tired lawmakers clashing on everything from Marxism to submarines as dawn neared, and the speaker of parliament comparing the bailout deal to “a coup”.

Mr Tsipras himself, who is associated with the moderate wing of his party, has publicly said he disagrees with measures demanded.

“From this point on, party procedures will be followed in order to deal with the problem”, she said after the vote.

After a contentious vote on the first set of measures last week saw 38 members of the ruling SYRIZA party rebel, Tsipras reshuffled his cabinet and said that he would have to lead a minority government until a final deal with creditors is concluded, referring to the rebellion as an “open wound during a critical time”.

Many in Tsipras’ Syriza party, including former finance minister Yanis Varoufakis, voted against last week’s austerity measures, which included big increases to sales taxes that took effect on Monday. But that is still roughly a quarter of all party lawmakers.

“We chose a hard compromise to avert the most extreme plans by the most extreme circles in Europe”, he told the lawmakers. “Today we must all redefine the possibilities ahead of us given the new circumstances”, Mr Tsipras said in an appeal to parliament to back the reforms.

“The left’s presence in government is a bastion for the defense of the interests of the people…” Last week, the central bank upped its emergency lifeline by almost $1 billion; news reports said that its governing council had voted Wednesday to give another boost of the same amount.

Greeks will be able to withdraw 420 euros a week at once instead of just 60 euros a day, but the limit will effectively remain the same and capital controls will also stay in place.

The plenary approved the bill that ratifies an European Union directive to guarantee bank deposits of up to 100,000 euros in cases of failed banks as well as a civil justice reform designed to reduce time and costs in legal proceedings. Lawmakers have also been called to approve reforms related to banking union mechanisms, aimed at reducing the risk for European governments from bank crises. “Greece must fulfil the conditions, otherwise the money can not flow”. It almost crashed out of the eurozone this month, after relations between Athens and its creditors hit rock-bottom, and was only saved by a last-minute U-turn from Tsipras.

AP News in Brief at 5:58 a.m. EDT | The News Tribune

One Response to "Greek parliament passes reforms needed for European Union bailout talks"

  1. Peter Brown  July 25, 2015 at 4:49 am

    I truly hope that the Greek Government this time will use some of this bale-out money to purchase new Drachma notes as a contingency. They are likely to need them.

    Reply

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