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Greek Debt Blueprint Gets a Cold Reception in Athens Greek Debt Blueprint Gets a Cold Reception in Athens
(about 1 hour later)
ATHENS — Prime Minister Alexis Tsipras faced anger and resistance on Tuesday from members of his own radical left political party, complicating his efforts to strike a deal this week with Greece’s creditors, as some lawmakers and party officials criticized concessions by the Greek side and expressed doubts about voting for a deal in Parliament.ATHENS — Prime Minister Alexis Tsipras faced anger and resistance on Tuesday from members of his own radical left political party, complicating his efforts to strike a deal this week with Greece’s creditors, as some lawmakers and party officials criticized concessions by the Greek side and expressed doubts about voting for a deal in Parliament.
Mr. Tsipras returned to Athens on Tuesday afternoon after negotiations in Brussels brought predictions that a deal would be completed by the end of the week, in which creditors would unlock bailout funding so that Greece can stave off default in exchange for concessions on tax increases and pension changes. Less clear, if critical in the eyes of Greek leaders, is a potential European promise for future debt relief.Mr. Tsipras returned to Athens on Tuesday afternoon after negotiations in Brussels brought predictions that a deal would be completed by the end of the week, in which creditors would unlock bailout funding so that Greece can stave off default in exchange for concessions on tax increases and pension changes. Less clear, if critical in the eyes of Greek leaders, is a potential European promise for future debt relief.
Mr. Tsipras is now scheduled to return to Brussels on Wednesday to meet with the leaders of Greece’s creditors on the sidelines of a meeting of European finance ministers, after a request for further discussions on European concerns about the proposed deal.Mr. Tsipras is now scheduled to return to Brussels on Wednesday to meet with the leaders of Greece’s creditors on the sidelines of a meeting of European finance ministers, after a request for further discussions on European concerns about the proposed deal.
But with negotiations still underway in Brussels, Mr. Tsipras must ultimately sell any final deal to his Syriza Party. Syriza rose in recent years from the left-wing fringes of Greece’s political landscape to take power after January elections, vowing to repeal the economic austerity policies demanded by creditors in exchange for bailout loans. But with negotiations still underway in Brussels, Mr. Tsipras must ultimately sell any final deal to his Syriza party. Syriza rose in recent years from the left-wing fringes of Greece’s political landscape to take power after January elections, vowing to repeal the economic austerity policies demanded by creditors in exchange for bailout loans.
Now, some Syriza members, as well as political opponents, are accusing Mr. Tsipras of perpetuating austerity rather than overturning it.Now, some Syriza members, as well as political opponents, are accusing Mr. Tsipras of perpetuating austerity rather than overturning it.
“If the text remains as is, Syriza’s members of Parliament will have problems voting for it,” said Ioannis Zerdelis, a Syriza lawmaker from Lesbos. “I personally would have a moral problem voting for it.”“If the text remains as is, Syriza’s members of Parliament will have problems voting for it,” said Ioannis Zerdelis, a Syriza lawmaker from Lesbos. “I personally would have a moral problem voting for it.”
Another Syriza lawmaker, Ioannis Michelogiannakis, speaking on Greek television, described some of the proposed measures in the deal as “crimes.”Another Syriza lawmaker, Ioannis Michelogiannakis, speaking on Greek television, described some of the proposed measures in the deal as “crimes.”
On Tuesday evening, Mr. Tsipras briefed some party and government officials about the developments from Brussels.On Tuesday evening, Mr. Tsipras briefed some party and government officials about the developments from Brussels.
Earlier in the day, his spokesman, Gabriel Sakellaridis, said Syriza’s entire parliamentary delegation would be briefed after a deal is finalized, which could occur when European leaders hold a summit meeting on Thursday in Brussels. Any deal would have to be approved by Greece’s Parliament by the end of this week, he added.Earlier in the day, his spokesman, Gabriel Sakellaridis, said Syriza’s entire parliamentary delegation would be briefed after a deal is finalized, which could occur when European leaders hold a summit meeting on Thursday in Brussels. Any deal would have to be approved by Greece’s Parliament by the end of this week, he added.
Mr. Sakellaridis told Greek television that the prime minister expected a “governmental majority” for any final deal, noting that a failure to achieve one would mean calling snap elections, throwing Greece into disarray. “We won’t reach that point,” he predicted.Mr. Sakellaridis told Greek television that the prime minister expected a “governmental majority” for any final deal, noting that a failure to achieve one would mean calling snap elections, throwing Greece into disarray. “We won’t reach that point,” he predicted.
Mr. Tsipras has always faced a major political challenge with the negotiations.Mr. Tsipras has always faced a major political challenge with the negotiations.
European creditors have shown little inclination to roll back austerity policies or to make major concessions. At the same time, Mr. Tsipras has faced pressure from inside Syriza not to compromise, with some party members openly calling for Greece to default on its debt and leave the eurozone, positions not backed by most Greek citizens.European creditors have shown little inclination to roll back austerity policies or to make major concessions. At the same time, Mr. Tsipras has faced pressure from inside Syriza not to compromise, with some party members openly calling for Greece to default on its debt and leave the eurozone, positions not backed by most Greek citizens.
Negotiations with Greece’s creditors — the International Monetary Fund, the European Central Bank and eurozone countries — have been prolonged and torturous, with accusations coming from both sides. Under pressure to show ways to raise revenue, the Greek side forwarded a new proposal on Sunday night that called for some tax increases, especially on businesses and the wealthy, but also higher service taxes on some items, which could hurt the poor. The proposal also called for higher contributions from employers and employees to pension funds.Negotiations with Greece’s creditors — the International Monetary Fund, the European Central Bank and eurozone countries — have been prolonged and torturous, with accusations coming from both sides. Under pressure to show ways to raise revenue, the Greek side forwarded a new proposal on Sunday night that called for some tax increases, especially on businesses and the wealthy, but also higher service taxes on some items, which could hurt the poor. The proposal also called for higher contributions from employers and employees to pension funds.
“This makes life worse for ordinary citizens,” said Despoina Charalampidou, a Syriza lawmaker who is now a deputy speaker of Parliament. “The measures constitute austerity.”“This makes life worse for ordinary citizens,” said Despoina Charalampidou, a Syriza lawmaker who is now a deputy speaker of Parliament. “The measures constitute austerity.”
Sitting in her office in Parliament, Ms. Charalampidou stressed that the negotiations were continuing. She did not rule out supporting a final deal, especially if it included concrete European promises to reduce Greece’s public debt, estimated at around 320 billion euros, and provided structural funds to stimulate economic growth.Sitting in her office in Parliament, Ms. Charalampidou stressed that the negotiations were continuing. She did not rule out supporting a final deal, especially if it included concrete European promises to reduce Greece’s public debt, estimated at around 320 billion euros, and provided structural funds to stimulate economic growth.
“Otherwise, I don’t think it will pass,” she added. She said the prime minister was facing a “very complex, even insurmountable task.” She blamed European creditors for using negotiations to send a stern political message about challenging austerity, saying that they “want to humiliate the Greeks for the choice they made on Jan. 25,” a reference to Election Day.“Otherwise, I don’t think it will pass,” she added. She said the prime minister was facing a “very complex, even insurmountable task.” She blamed European creditors for using negotiations to send a stern political message about challenging austerity, saying that they “want to humiliate the Greeks for the choice they made on Jan. 25,” a reference to Election Day.
Harry Papasotiriou, a political analyst in Athens, predicted that most Syriza members would ultimately toe the line and support any deal endorsed by Mr. Tsipras. “He’ll survive politically, but down the road, he could suffer,” Mr. Papasotiriou said.Harry Papasotiriou, a political analyst in Athens, predicted that most Syriza members would ultimately toe the line and support any deal endorsed by Mr. Tsipras. “He’ll survive politically, but down the road, he could suffer,” Mr. Papasotiriou said.
Adonis Georgiadis, a member of the New Democracy party, which is now in political opposition after being voted out of the government in January, pounced at the chance to affix Syriza with the stain of austerity. “If this is not an austerity measure, can you explain what austerity is?” he asked.Adonis Georgiadis, a member of the New Democracy party, which is now in political opposition after being voted out of the government in January, pounced at the chance to affix Syriza with the stain of austerity. “If this is not an austerity measure, can you explain what austerity is?” he asked.
In the eyes of many Syriza leftists, any compromise that constitutes a major departure from their election mandate to roll back austerity is considered politically risky.In the eyes of many Syriza leftists, any compromise that constitutes a major departure from their election mandate to roll back austerity is considered politically risky.
Even though the negotiations have been ugly, Syriza remains popular, especially Mr. Tsipras, as many ordinary Greeks have relished the confrontation with Europe. But that has also placed Syriza in a tough political spot, since most analysts say compromise is inevitable if Greece wants to remain in the eurozone.Even though the negotiations have been ugly, Syriza remains popular, especially Mr. Tsipras, as many ordinary Greeks have relished the confrontation with Europe. But that has also placed Syriza in a tough political spot, since most analysts say compromise is inevitable if Greece wants to remain in the eurozone.
“These measures cannot be voted for,” Alexis Mitropoulos, another Syriza lawmaker, told the Greek media on Tuesday. “This package that you have in your hands cannot be the one to be presented in Parliament.”“These measures cannot be voted for,” Alexis Mitropoulos, another Syriza lawmaker, told the Greek media on Tuesday. “This package that you have in your hands cannot be the one to be presented in Parliament.”