EUROZONE-GREECE/MORNING Harsh reality bites as Greece begins cautious return to normal

Record ID: 146585

  • Title: EUROZONE-GREECE/MORNING Harsh reality bites as Greece begins cautious return to normal
  • Date: 20th July 2015
  • Summary: ATHENS, GREECE (JULY 20, 2015) (REUTERS) GREEK PARLIAMENT GREEK FLAG FLUTTERING VARIOUS OF TOURISTS OUTSIDE PARLIAMENT FOUNTAIN WITH PARLIAMENT IN BACKGROUND VARIOUS OF PEOPLE WALKING IN SYNTAGMA SQUARE (SOUNDBITE) (Greek) GREEK PENSIONER, TASOS KARDASIS, SAYING: "Theoretically speaking the situation, the agreement has been reached but practically speaking it will take a w
  • Embargoed: 4th August 2015 13:00
  • Keywords:
  • Location: Greece
  • Country: Greece
  • Topics: General
  • Reuters ID: LVA1I6O8QIIUBYP8HMABWPE1ORL4
  • Aspect Ratio: 16:9
  • Story Text: As Greece begins its cautious return to normal on Monday (July 20), residents in the capital Athens said the harsh reality of the bailout is beginning to set in.
    Banks all across the country reopened after a three-week shutdown.
    The June 29 shutdown was the most visible sign of the crisis that took Greece to the brink of falling out of the euro earlier this month.
    But Prime Minister Alexis Tsipras is eyeing a fresh start and swift talks on the bailout that will keep Greece afloat.
    The tough terms of the bailout will see tax hikes, pension cuts, strict curbs on public spending, an overhaul of collective bargaining rules and a transfer of 50 billion euros of state assets into a special privatisation fund.
    In exchange, Greece is hoping to receive loans of up to 86 billion euros.
    Greeks walking in sunny Syntagma Square said they were resigned to the reality of the situation.
    "Theoretically speaking the situation, the agreement has been reached, but practically speaking it will take a while to come into effect," said pensioner Tasos Kardasis.
    A cabinet reshuffle saw the removal of dissident members of Tsipras' ruling Syriza party following a revolt over the tough bailout terms.
    Tsipras now intends to seal the bailout accord with European partners over the next few weeks before likely new elections. Interior Minister Nikos Voutsis said the vote could happen in September or October.
    "Elections are the only way to go. The later it happens the better. Because if it happens too soon, people will not be able to regain their confidence," said 67-year-old Iordanis Saroglou.
    For 57-year-old mathematics teacher Vassilis Anagnostopoulos, the future is bleak.
    "At the moment our hands have been forced, democracy is not alive in Europe anymore," he said.
    On Wednesday (July 22), parliament will vote on the specific measures in the bailout package.
    Together with his coalition partners, Tsipras has 162 seats in the 300-seat parliament. But the rebellion has cut his support to just 123 votes.
    Under Greek constitutional rules, the minimum support needed for a minority government is 120, so if the number falls below that level, the government's future would be in doubt.
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