EUROZONE-GREECE/PARLIAMENT COMMITTEE-REAX Intense debate over bailout reforms begins in Greek parliament

Record ID: 146988

  • Title: EUROZONE-GREECE/PARLIAMENT COMMITTEE-REAX Intense debate over bailout reforms begins in Greek parliament
  • Date: 15th July 2015
  • Summary: ATHENS, GREECE (JULY 15, 2015) (REUTERS) EXTERIORS OF GREEK PARLIAMENT PRESIDENTIAL GUARDS OUTSIDE PARLIAMENT GREEK FLAG FLYING ABOVE PARLIAMENT
  • Embargoed: 30th July 2015 13:00
  • Keywords:
  • Location: Greece
  • Country: Greece
  • Topics: General
  • Reuters ID: LVA7IZU6ZRA7KEIT6T62NE6GA3GY
  • Aspect Ratio: 16:9
  • Story Text: A lot of the measures in a deal struck with Greece's lenders will have a recessionary effect but removing the prospect of a "Grexit" will help offset their impact and bring in investments, Finance Minister Euclid Tsakalotos said on Wednesday (July 15).
    During an intense debate at the parliament, Tsakalotos told lawmakers that only time would tell whether this agreement was economically viable, ahead of a crucial vote on the package later on Wednesday.
    "It's obvious to most of you, it is the difficult path and indeed it contains many aspects which can contribute to recession. There are many reforms which are still moving in a neo-liberal direction," he warned.
    "There are concerns about recession, there are concerns, but under certain conditions, if the debt issue is resolved, if we have a strong investment programme, if people see it optimistically that the Grexit was ultimately averted, then they will realise that since there has been no Grexit with Syriza in power, there will be no Grexit. The combination of recessionary and non-recessionary measures may finally lead to growth," added Tsakalotos during an address to parliament where former finance minister Yanis Varoufakis was in attendance and was seen applauding after his successor's speech.
    During the same discussion, Greece's parliament speaker, speaking as in her capacity as a ruling party lawmaker, asked the 300-seat house not to approve the package of austerity measures demanded by the country's creditors in exchange for a third bailout.
    "This parliament must not conclude the blackmail, must not accept the blackmail, the blackmail which is aimed towards the government," Zoe Constantopoulou, a prominent member of the Syriza party's left wing, told deputies ahead of a crucial vote later on Wednesday.
    She said creditors must respect parliamentary procedures, objecting to the pressing deadline for the vote.
    Prime Minister Alexis Tsipras is battling to win lawmakers' approval for a bailout deal to keep Greece in the euro and avoid bankruptcy.
    Having reluctantly agreed terms for negotiations on a third bailout from international lenders, Tsipras must face down a rebellion in his anti-austerity Syriza party to push sweeping pro-market reforms and spending cuts through parliament.
    Dozens of MPs, including senior Syriza figures and the government's junior coalition partner, could reject or partially reject the bailout, forcing Tsipras to rely on pro-European opposition lawmakers to carry the vote, which is expected after midnight.
    A snap election could follow if the prime minister's majority collapses.
    Speaking to journalists on his arrival to parliament, Greece's energy minister and head of the far-left flank of ruling Syriza party said he would not back the austerity measures.
    "As you know, the whole of Syriza didn't vote for the first bailout. We didn't vote for the second bailout either and we were right. I am not going to vote for the third bailout either, the third bailout which is submitted today in parliament," Panagiotis Lafazanis told reporters, underscoring the challenge Tsipras will face in keeping his party united over the proposals.
    "The dilemma, bailout or catastrophe, it is a terrorising dilemma," he added.
    Interior Minister Nikos Voutsis said that MPs would be judged on their stance during the vote.
    "Everybody will take responsibility for their actions," he told journalists outside parliament.
    Tsipras's close advisor and Chief of Staff, Alekos Flabouraris said the country and its government had been put under pressure by international lenders.
    "By pressing the government, by pressing Tsipras, by pressing the parliament, and blackmailing, these lenders have now shown their true colours and we must resist it," he said before entering parliament, while Vice President of the parliament Alexis Mitropoulos said that every MP should vote later in parliament.
    "Under normal circumstances no Greek MP should vote. However, society does not wish for a rift. The majority of politicians, as evident by the failed negotiations, is incapable of handling the consequences of a rift," Mitropoulos told reporters.
    While an MP for the opposition New Democracy party, Adonis Georgiadis, criticized Tsipras for saying he wanted to pass the bill through parliament even though he did not believe in the programme.
    "Yesterday Mr Prime Minister indicated that he has made steps towards realism but he said something that he must never say again. He said that he does not have faith in the programme. This programme cannot be implemented if one does not have faith in it. If it is not implemented, this will be the end of us," said Adonis Georgiadis.
    The latest deal was a major capitulation from Syriza, which stormed to power in January promising an end to austerity.
    Syriza's junior coalition partner announced it would vote only for certain clauses in the bill, rejecting those reforms that went beyond a previous vote in parliament that had given Tsipras a mandate to negotiate in Brussels.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2015. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register