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Greece’s MPs back the bailout plan by the Prime Minister

Greece’s MPs back the bailout plan by the Prime Minister

Greece’s parliament voted in support of the economic reforms plan that was rejected by the government a week ago. The early Saturday’s vote was a final desperate move for securing billions of loans and also staying within the eurozone- http://money.cnn.com/2015/07/10/news/economy/greece-bailout-europe-deal/index.html?iid=hp-toplead-dom (follow the link for more information).

Greece’s Prime Minister Alexis Tsipras won an overwhelming cross-party backing after the late-night debate. However, there were MPs from his own party who abstained while others voted against him.

Earlier, Tsipras admitted that there were elements of the bailout proposals that did not meet the anti-austerity promises of his party. 251 MPs voted in support of the proposal while 32 voted against it. Eight “present” MPs abstained while nine deputies did not attend the parliamentary seating.

Some members of the Syriza Party that Mr. Tsipras belongs to who abstained include Zoe Constantopoulou who is the Parliament Speaker and Panagiotis Lafazanis, the Energy Minister. The bailout plan is seeking €53.5bn ($59.47bn) that will cover the debt that Greece owes creditors until 2018.

Following the vote, Europe will now make the next move which will be basically to finalize the deal by Sunday. The Prime Minister says that the government has a mandate to negotiate with creditors so that a viable solution can be reached. Tsipras says that realizing positive outcome is currently the priority of his government. This implies that issue of fresh elections, reshuffles, unity governments and new coalitions as well as other things that are being speculated will wait for some time- http://www.theguardian.com/business/live/2015/jul/10/greek-crisis-deal-hopes-mps-vote-tsipras-live (follow the link for more information).

Reliable sources have said that Greece’ creditors, the European Central  Bank, the International Monetary Fund and the European Commission, believe that the new proposal is positive. The officials of the eurozone are now expected to discuss the requests by Greece for rescheduling some debts.

In return, Tsipras has given into several demands that include tax rises, pension overhaul and privatizations measures that were rejected last Sunday in the referendum. Most banks in Greek are about to run out of money. Unless this deal is sealed, the country is likely to exit the euro- http://www.bbc.com/news/world-europe-33491452 (follow the link for more information).

According to analysts, the reform package marks a major downward trend for Tsipras since his leftwing party was elected on the basis of the anti-austerity platform. While addressing MPs, Tsipras admitted that there were mistakes made by his government. However, he said that the proposals provided the best deal possible for the country.

Tsipras called the long negotiations that his government has had with creditors “a battle”. He said that he feels that a demarcation line has been reached and a minefield no longer exists. He added that the new bailout deal has several proposals that were far from the government’s pledges but marginally, it was better than the proposals that creditors had presented last month.

The Eurogroup, which comprises of the finance ministers of the eurozone will discuss the proposals before the meeting of the eurozone governments’ heads on Sunday afternoon after which a EU summit will be held two hours after the meeting.

Sources

http://money.cnn.com/2015/07/10/news/economy/greece-bailout-europe-deal/index.html?iid=hp-toplead-dom

http://www.theguardian.com/business/live/2015/jul/10/greek-crisis-deal-hopes-mps-vote-tsipras-live

http://www.bbc.com/news/world-europe-33491452

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