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Greece debt crisis: Eurozone deal laws backed by MPs | Greece debt crisis: Eurozone deal laws backed by MPs |
(about 2 hours later) | |
Greek MPs have approved tough economic measures required to enable an €86bn eurozone bailout deal to go ahead. | Greek MPs have approved tough economic measures required to enable an €86bn eurozone bailout deal to go ahead. |
The legislation includes tax rises and an increase in the retirement age. | The legislation includes tax rises and an increase in the retirement age. |
Two hundred and twenty nine lawmakers voted Yes, 64 voted No and six abstained. Half of the No votes came from the governing Syriza party. | Two hundred and twenty nine lawmakers voted Yes, 64 voted No and six abstained. Half of the No votes came from the governing Syriza party. |
Ahead of the vote, protesters threw petrol bombs at police during an anti-austerity protest close to parliament, and police responded with tear gas. | Ahead of the vote, protesters threw petrol bombs at police during an anti-austerity protest close to parliament, and police responded with tear gas. |
Prime Minister Alexis Tsipras had said he did not believe in the deal, but nonetheless urged MPs to approve the measures. | Prime Minister Alexis Tsipras had said he did not believe in the deal, but nonetheless urged MPs to approve the measures. |
He said he was willing to implement the "irrational" proposals to avoid the collapse of the banks and disaster for Greece. | He said he was willing to implement the "irrational" proposals to avoid the collapse of the banks and disaster for Greece. |
In a passionate speech just before the vote, Mr Tsipras told parliament: "The Greek people are fully conscious and can understand the difference between those who fight in an unfair battle and those who just hand in their weapons." | In a passionate speech just before the vote, Mr Tsipras told parliament: "The Greek people are fully conscious and can understand the difference between those who fight in an unfair battle and those who just hand in their weapons." |
The vote passed despite 32 of his ruling left-wing Syriza party voting No and six more abstaining. | |
Among the No voters was parliamentary Speaker Zoe Constantopoulo, who walked out during the debate, before returning to make a fiery speech condemning a "very black day for democracy in Europe". | |
Former finance minister, Yanis Varoufakis, who resigned on 6 July, also voted against the package, having written a scathing blog about the bailout deal earlier. | Former finance minister, Yanis Varoufakis, who resigned on 6 July, also voted against the package, having written a scathing blog about the bailout deal earlier. |
See how events happened here | See how events happened here |
Analysis: Mark Lowen, BBC News, Athens | |
The measures passed comfortably - but not without a major rebellion within the government. | |
Thirty-eight of the prime minister's MPs refused to back the deal, with the speaker of parliament calling it "social genocide". | |
Alexis Tsipras said he'd had to choose between a deal he didn't believe in or chaotic default. He has been weakened and will now need a reshuffle or a vote of confidence. | |
Meanwhile eurozone finance ministers will hold a conference call today to discuss the next steps in the bailout. Of immediate concern is how to fill Greece's short-term cash needs, with the country facing a big payment to the IMF next week. | |
It could be financed from an EU-wide fund, which Britain opposes. And so there's still a long road ahead. But one big obstacle here has been cleared. | |
More than half of the members of Syriza's central committee signed a statement condemning the bailout agreement, describing it as a coup against their nation by European leaders. | More than half of the members of Syriza's central committee signed a statement condemning the bailout agreement, describing it as a coup against their nation by European leaders. |
Opponents of the deal took to the streets of Athens ahead of the vote, and unions and trade associations representing civil servants, municipal workers and pharmacy owners held strike action. | Opponents of the deal took to the streets of Athens ahead of the vote, and unions and trade associations representing civil servants, municipal workers and pharmacy owners held strike action. |
The possible bailout was agreed in Brussels on Monday by eurozone members, though one of Greece's creditors, the International Monetary Fund (IMF), has suggested in a report that it does not go far enough - and that Greece will need some of its debts to be written off. | The possible bailout was agreed in Brussels on Monday by eurozone members, though one of Greece's creditors, the International Monetary Fund (IMF), has suggested in a report that it does not go far enough - and that Greece will need some of its debts to be written off. |
Greece's economy has shrunk by 25% in the last five years amid austerity measures designed to curtail its ballooning public sector debt. | Greece's economy has shrunk by 25% in the last five years amid austerity measures designed to curtail its ballooning public sector debt. |
In order to begin negotiations over a third bailout worth €86bn (£61bn; $95bn) over three years, Greek MPs needed to approve measures including: | In order to begin negotiations over a third bailout worth €86bn (£61bn; $95bn) over three years, Greek MPs needed to approve measures including: |
As parliamentary committees considered the details of the laws, deputy finance minister and Syriza member Nadia Valavani announced her resignation, saying: "I'm not going to vote for this amendment, and this means I cannot stay in the government." | As parliamentary committees considered the details of the laws, deputy finance minister and Syriza member Nadia Valavani announced her resignation, saying: "I'm not going to vote for this amendment, and this means I cannot stay in the government." |
Greek Finance Minister Euclid Tsakalotos told MPs: "Monday was most difficult day of my life. It's a decision that will weigh on me for rest of my life. We had no choice." | Greek Finance Minister Euclid Tsakalotos told MPs: "Monday was most difficult day of my life. It's a decision that will weigh on me for rest of my life. We had no choice." |
He added: "We never said this was a good agreement." | He added: "We never said this was a good agreement." |
And tempers flared when Mr Varoufakis was heckled with shouts of "You got us here" while addressing one committee. | And tempers flared when Mr Varoufakis was heckled with shouts of "You got us here" while addressing one committee. |
The jeers came when he said he doubted the deal could work, and compared it to the conditions imposed on Germany in the Treaty of Versailles after World War One. | The jeers came when he said he doubted the deal could work, and compared it to the conditions imposed on Germany in the Treaty of Versailles after World War One. |
Meanwhile, French MPs have overwhelmingly backed the Greek bailout deal. Because of their constitutions, several eurozone members, including Germany, must ratify the deal in their parliaments before it can proceed. | Meanwhile, French MPs have overwhelmingly backed the Greek bailout deal. Because of their constitutions, several eurozone members, including Germany, must ratify the deal in their parliaments before it can proceed. |
Banks stay shut | Banks stay shut |
Greece faces an immediate cash crisis. Banks have been shut since 29 June. | Greece faces an immediate cash crisis. Banks have been shut since 29 June. |
Mr Tsipras has warned banks are unlikely to reopen until the bailout deal is ratified, and this could take another month. | Mr Tsipras has warned banks are unlikely to reopen until the bailout deal is ratified, and this could take another month. |
The European Commission has formally proposed a short-term €7bn loan for Greece through the EU-wide European Financial Stability Mechanism (EFSM). | The European Commission has formally proposed a short-term €7bn loan for Greece through the EU-wide European Financial Stability Mechanism (EFSM). |
Use of the EFSM for eurozone rescues has been opposed by Britain and other countries which are not part of the euro but are European Union members. | Use of the EFSM for eurozone rescues has been opposed by Britain and other countries which are not part of the euro but are European Union members. |
One British official in Brussels told the BBC the UK government had no objection in principle to the use of the EFSM - as long as British taxpayers' money was ring-fenced from any liability. | One British official in Brussels told the BBC the UK government had no objection in principle to the use of the EFSM - as long as British taxpayers' money was ring-fenced from any liability. |
Valdis Dombrovskis, a senior European Commission official, said it was working to protect non-euro states from any negative financial consequences should the loan not be repaid. | Valdis Dombrovskis, a senior European Commission official, said it was working to protect non-euro states from any negative financial consequences should the loan not be repaid. |
'Need for debt help' | 'Need for debt help' |
The IMF report was written before the eurozone reached a deal with Greece in the early hours of Monday. It was shared with eurozone leaders in advance, but made public only on Tuesday. | The IMF report was written before the eurozone reached a deal with Greece in the early hours of Monday. It was shared with eurozone leaders in advance, but made public only on Tuesday. |
It predicts that, in two years' time, Greek debt will reach close to 200% of GDP (national income) which could "only be made sustainable through debt relief measures that go far beyond what Europe has been willing to consider so far". | It predicts that, in two years' time, Greek debt will reach close to 200% of GDP (national income) which could "only be made sustainable through debt relief measures that go far beyond what Europe has been willing to consider so far". |
It recommends a "very dramatic extension" on the maturity of Greece's debts, "with grace periods of, say, 30 years on the entire stock of European debt". | It recommends a "very dramatic extension" on the maturity of Greece's debts, "with grace periods of, say, 30 years on the entire stock of European debt". |
"Other options," it says, "include explicit annual transfers to the Greek budget or deep upfront haircuts (debt write-offs)". | "Other options," it says, "include explicit annual transfers to the Greek budget or deep upfront haircuts (debt write-offs)". |
Germany, the largest contributor to Greek rescue funds, and a number of other eurozone countries have long resisted any talk of haircuts and debt relief. | Germany, the largest contributor to Greek rescue funds, and a number of other eurozone countries have long resisted any talk of haircuts and debt relief. |
The European Commission published its own assessment on Wednesday, taking a more optimistic view of Greece's debt sustainability than the IMF but also suggesting debt relief. | The European Commission published its own assessment on Wednesday, taking a more optimistic view of Greece's debt sustainability than the IMF but also suggesting debt relief. |
The Commission's report says rescheduling the debt is possible, but only if Greece implements the reforms being demanded by its creditors. It rules out debt write-offs. | The Commission's report says rescheduling the debt is possible, but only if Greece implements the reforms being demanded by its creditors. It rules out debt write-offs. |
Are you in Greece, what is your reaction to the latest developments? Are you planning to travel to Greece this summer? Email haveyoursay@bbc.co.uk with your experience. | Are you in Greece, what is your reaction to the latest developments? Are you planning to travel to Greece this summer? Email haveyoursay@bbc.co.uk with your experience. |
Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: | Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: |