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Greek debt crisis: MPs prepare for second vote on bailout reforms Greece crisis: Tsipras takes on Syriza critics before vote
(about 2 hours later)
The Greek parliament is to vote later on a second set of reforms needed to secure its bailout deal. Greece's prime minister has taken on critics in his Syriza party ahead of another crucial vote on reforms.
If MPs approve the financial and judicial reforms, Greece will be able to press ahead with negotiations for an €86 billion bailout from its creditors. Alexis Tsipras attacked rebel MPs who opposed an agreement with creditors, accusing them of "hiding behind the safety of my signature".
Prime Minister Alexis Tsipras has been trying to rally his Syriza colleagues, saying the Greek people had "pinned their hopes" on staying in the euro. MPs need to back the reforms for talks to start on a new €86bn bailout.
The vote is expected to pass with the support of opposition parties. The vote is expected to pass with the support of opposition parties, but Mr Tsipras hopes to avoid a rebellion from within the ranks of Syriza.
Finance Minister Euclid Tsakalotos said it was "extremely important" for the vote to pass so that talks on the bailout could begin on Friday. Some 32 of the radical-left party's 149 MPs - including former Finance Minister Yanis Varoufakis - voted against the first tranche of bailout measures last week. Another six abstained.
But he and Mr Tsipras need to avoid a significant rebellion from within the ranks of Syriza. The rebellion reduced Mr Tsipras's support within his own ruling coalition to 123 MPs, barely more than the minimum 120 required to sustain a minority government.
Some 32 of the radical-left party's 149 MPs - including former finance minister Yanis Varoufakis - voted against the first tranche of bailout measures last week. Another six abstained. "Up until today I've seen reactions, I've read heroic statements but I haven't heard any alternative proposal," Mr Tsipras reportedly told Syriza MPs on Tuesday night.
The rebellion reduced Mr Tsipras' support within his own ruling coalition to just 123, barely more than the minimum 120 required to sustain a minority government. He said the Greek people had "pinned their hopes" on the government's ability to find a solution to the debt crisis.
"Up until today I've seen reactions, I've read heroic statements but I haven't heard any alternative proposal," Mr Tsipras told Syriza MPs on Tuesday night, an official told the Reuters news agency. Finance Minister Euclid Tsakalotos said it was "extremely important" for the vote on financial and judicial reforms to pass so that talks on the bailout could begin on Friday.
"Syriza as a party must reflect society, must welcome the worries and expectations of tens of thousands of ordinary people who have pinned their hopes on it," he reportedly said.
Last week's vote was about the austerity measures imposed by Greece's creditors - a mix of economic reforms and budget cuts demanded by the eurozone countries and institutions before bailout talks could continue.Last week's vote was about the austerity measures imposed by Greece's creditors - a mix of economic reforms and budget cuts demanded by the eurozone countries and institutions before bailout talks could continue.
The measures that will come before the parliament on Wednesday are of a more structural nature, including:The measures that will come before the parliament on Wednesday are of a more structural nature, including:
More contentious measures - phasing out early retirement and tax rises for farmers - have been pushed back to August.More contentious measures - phasing out early retirement and tax rises for farmers - have been pushed back to August.
More money due
Greece's public sector union has called for a protest during the emergency debate in parliament on Wednesday evening.Greece's public sector union has called for a protest during the emergency debate in parliament on Wednesday evening.
Asked if the threat of a Greek exit from the euro - or Grexit - had passed, EU Economic Affairs Commissioner Pierre Moscovici said on Tuesday: "I think we've made a big step in that direction."Asked if the threat of a Greek exit from the euro - or Grexit - had passed, EU Economic Affairs Commissioner Pierre Moscovici said on Tuesday: "I think we've made a big step in that direction."
The International Monetary Fund (IMF) confirmed on Monday that Greece had cleared its overdue debt repayments of €2.05bn (£1.4bn) and was no longer in arrears.The International Monetary Fund (IMF) confirmed on Monday that Greece had cleared its overdue debt repayments of €2.05bn (£1.4bn) and was no longer in arrears.
The repayments, and another for €4.2bn to the European Central Bank (ECB) due on Monday, were made possible by a short-term EU loan of €7bn. The repayments, which included €4.2bn to the European Central Bank (ECB), were made possible by a short-term EU loan of €7.16bn.
Greece's next major deadline is 20 August, when it must pay €3.2bn owed to the ECB, followed by a payment of €1.5bn to the IMF in September.Greece's next major deadline is 20 August, when it must pay €3.2bn owed to the ECB, followed by a payment of €1.5bn to the IMF in September.
The Greek government received a small boost on Tuesday when credit ratings agency Standard & Poor's raised the country's rating by two notches to CCC+ from CCC-.The Greek government received a small boost on Tuesday when credit ratings agency Standard & Poor's raised the country's rating by two notches to CCC+ from CCC-.
On Monday, Greek banks reopened after being closed for three weeks but many restrictions remain and Greeks are facing price rises after an increase in VAT.On Monday, Greek banks reopened after being closed for three weeks but many restrictions remain and Greeks are facing price rises after an increase in VAT.
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