Greek MPs Back Bailout Reform Plans, As PM Alexis Tsipras Admits They Are Entering An Austerity 'Minefield'
Anti-Austerity Greek MPs Back A Bailout Plan That Looks Very Much Like Austerity
Press Association
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The Greek parliament has backed government proposals for economic reforms in the hope of ending the country's debt crisis.
Punishing tax rises and spending cuts are being offered in return for a financial lifeline of 53.5 billion euro (£38.5 billion) to prop up the country's failing banking system and avoid the possibility of crashing out of the single currency.
Finance ministers from the eurozone nations will consider the latest proposals to give the debt-stricken country a fresh bailout.
During a late-night debate in Athens, Greek prime minister Alexis Tsipras acknowledged that the measures were a long way from the anti-austerity platform his radical Syriza party was elected on.
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Greek prime minister Alexis Tsipras in financial discussions
Urging the MPs to back his negotiating position, Mr Tsipras admitted he had made mistakes during his tenure and described the struggle with the creditors - the European Commission, European Central Bank (ECB) and International Monetary Fund (IMF) - as a battle.
"Now I have the feeling we've reached the demarcation line," he said. "From here on there is a minefield."
Austerity policies demanded by the creditors were rejected by the Greek people in a referendum on Sunday, but Mr Tsipras insisted that his latest proposal contains measures that would help the economy and would unlock sufficient financing for the country to emerge from its protracted crisis and see its massive debt tackled.
Athens has drawn up the plans in an attempt to secure its formal request for a bailout through the European Stability Mechanism (ESM).
Greece's new finance minister Euclid Tsakalotos stressed the urgency of the loan request "given the fragility of our banking system" and lack of liquidity.
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Taxis pass in front of Syntagma square as a poster depicting German Finance Minister Wolfgang Schaeuble reading ''For five years he is drinking your blood, now tell him NO'' referring to the upcoming referendum in central Athens. (AP Photo/Petros Karadjias) (credit:ASSOCIATED PRESS)
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A customer pushes a shopping cart past food aisles while shopping inside a local supermarket in Athens, Greece, on Friday, July 3, 2015. Shortages of commodities of broad consumption such as imported meat, beans, rice are expected to start to be felt next week. (Yorgos Karahalis/Bloomberg via Getty Images) (credit:Bloomberg via Getty Images)
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People line up to withdraw money from a bank machine in central Athens, Friday, July 3, 2015. (AP Photo/Emilio Morenatti) (credit:ASSOCIATED PRESS)
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Tourist sit on the ground and watch the Evzones of Greek Presidential Guards, during a changing of the guard at the tomb of the unknown Soldier, outside the parliament in central Athens, Thursday, July 2, 2015. (AP Photo/Petros Karadjias) (credit:ASSOCIATED PRESS)
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Evzones of Greek Presidential Guards are seen during changing of the guard at the tomb of the unknown Soldier outside the parliament in central Athens, on Thursday, July 2, 2015. (AP Photo/Petros Karadjias) (credit:ASSOCIATED PRESS)
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A Greek Orthodox priest walks by the poster of "NO." (AP Photo/Petros Karadjias) (credit:ASSOCIATED PRESS)
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In this photo taken on Thursday, July 2, 2015 pensioner Panagiotis Theodoropoulos smokes a cigarette at a cafe in the village of Karitaina about 210km (131 miles) southwest of Athens. (AP Photo/Spyros Tsakiris) (credit:ASSOCIATED PRESS)
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Members of the Communist-affiliated PAME labor union march by a "NO" poster in upcoming referendum during an anti-austerity protest calling to "Vote NO" in central Athens, on Friday, July 3, 2015. (AP Photo/Petros Karadjias) (credit:ASSOCIATED PRESS)
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People, right, wait to enter a bank for limited services as others use an ATM with a graffiti above it reading ''We vote No'' in Athens, Friday, July 3, 2015. Currency restrictions are in place to staunch a possible run on the banks. (AP Photo/Thanassis Stavrakis) (credit:ASSOCIATED PRESS)
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A banner with the word ''Yes'' at a bus stop, sprayed over "No" by supporters of the No vote referring to the upcoming referendum in Athens, Friday, July 3, 2015. (AP Photo/Thanassis Stavrakis) (credit:ASSOCIATED PRESS)
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People wait for public transportation at a bus stop in central Athens, Friday, July 3, 2015. (AP Photo/Emilio Morenatti) (credit:ASSOCIATED PRESS)
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Supporters of the Greek Communist Party shout slogans during a demonstration outside the Federation of Greek Industries in Athens on July 3, 2015. (ANGELOS TZORTZINIS/AFP/Getty Images) (credit:ANGELOS TZORTZINIS via Getty Images)
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Ballot boxes arrive at a local school in preparation for Sunday's referendum on July 3, 2015 in Athens, Greece. (Photo by Christopher Furlong/Getty Images) (credit:Christopher Furlong via Getty Images)
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Angela Merkel, Germany's chancellor, right, holds a mobile phone. Any future bailout program for Greece faces hurdles in Germany's lower house of parliament even if Greeks ignore their government's advice to reject a creditor offer in Sunday's referendum and vote 'yes,' German lawmakers said. (Krisztian Bocsi/Bloomberg via Getty Images) (credit:Bloomberg via Getty Images)
He told the Greek parliament the referendum result had strengthened the government's hand in seeking a new deal. "I think after the referendum we are in a stronger position," he said.
The proposals from Athens would provide three years of financing with repayments spaced more evenly than under previous bailouts, he said, and claimed there was a growing consensus for the need for a long-term debt relief agreement by 2022.
He added: "I think most of what we are asking for on debt relief is going to happen."
Eurozone finance ministers will discuss the proposals in Brussels today before Prime Minister David Cameron and fellow leaders hold an emergency summit involving all 28 European Union members on Sunday.
Downing Street said the eurozone had to work with Greece to find a way out of the crisis.
Bank closures in Greece have been extended until Monday and Greeks are limited to withdrawing just 60 euro (£43) per day after the imposition of capital controls.
British tourists have been warned to take sufficient cash to cover expected costs and emergencies and to ensure they have supplies of their usual prescription medicines in case of shortages.