Greek PM wins lawmakers’ backing for reform proposals

PanARMENIAN.Net - Greek Prime Minister Alexis Tsipras won backing from lawmakers on Saturday, July 11, for painful reform proposals aimed at obtaining a new international bailout, but he faced a rebellion in his own party that could threaten his majority in parliament.

The measures, which received an initial nod from European Union and International Monetary Fund officials before a meeting of euro zone finance ministers on Saturday, were passed with the support of pro-European opposition parties.

In an ominous sign for the stability of the government, however, 10 deputies on the ruling benches either abstained or voted against the measures and another 7 were not present, leaving Tsipras short of the 151 seats needed for a majority of his own, Reuters says.

Following the vote in parliament, Tsipras said he would now focus on securing a deal.

"The parliament today gave the government a strong mandate to complete the negotiations and reach an economically viable and socially fair agreement with its partners," Tsipras said. "The priority now is to have a positive outcome to the negotiations. Everything else in its own time."

Experts from the European Commission, ECB and the IMF spent Friday reviewing the Greek case for aid and the proposals for economic reforms that will be conditions for any loans.

A person close to the matter told Reuters that EU and IMF officials had given euro zone 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 euro zone finance ministers when they meet in Brussels at 3 pm.

The leader of the right wing Independent Greeks party, the junior coalition party in Tsipras' government, said his lawmakers would back the proposals "with a heavy heart."

Five members of Syriza's hardline Left Platform wing signed a letter saying it would be better to return to the drachma, Greece's pre-euro currency, than to swallow more austerity with no debt write-off.

Germany, which has contributed more to bailouts than any other country, sounded wary. A finance ministry spokesman ruled out any debt restructuring that would lower its real value.

France, Greece's strongest supporter in the euro zone, rushed to offer praise. President Francois Hollande called the offer "serious and credible". Eurogroup head Jeroen Dijsselbloem described it as a "thorough piece of text" but declined to go into specifics.

"Broad support in Greece gives it more credibility, but even then we need to consider carefully whether the proposal is good and if the numbers add up," he told reporters. "One way or the other, it is a very major decision we need to take."

Greece asked for 53.5 billion euros ($59 billion) to help cover its debts until 2018, a review of primary surplus targets in the light of the sharp deterioration of its economy, and a "reprofiling" of the country's long-term debt.