"Few countries have managed to do so", they admit • Two weeks of bank closures and capital controls have wrought havoc on the economy; banks will now need recapitalising to the tune of €25bn • Europe has to start countenancing "deep upfront haircuts" for Greece (something Germany has said is illegal under the Treaties of the euro) • If that's unpopular, the alternative is even more politically toxic. It has also promised to combat tax evasion and corruption, reduce bureaucracy, review public spending, modernize the pension system, reform the judicial system and address rising poverty through measures that have 'no fiscal effect.'. The firebrand minister is likely to be sacked from his position after tonight's vote as Mr Tsipras carries out a bold cabinet reshuffle to bring more moderates in to his government. The euro has been hit by Greece's ongoing crisis, and with some unexpected effects. Proud Boys: Far-right group becomes LGBT trend online, Perez Hilton: I never needed to be so cruel, Singapore offers 'pandemic baby bonus' to boost births, Led Zeppelin's Stairway To Heaven copyright battle is finally over, Kyrgyzstan election: Protesters storm parliament over vote-rigging claims, Ervin Staub: A Holocaust survivor’s mission to train ‘heroic bystanders’. Ratings agency Moody's said the "implementation risks" of the deal remained high because of the government's thin majority and the backdrop of political and social discontent. 61% of the Greek public voted to say No. We have to address this political difficulty.". Our man in Athens Colin Freeman is getting ready for a long night in the Greek parliament. There are open divisions in the ruling Syriza party: At least 5 of #Tsipras' original Jan 25th cabinet vote NO to #Greece deal... 32 Syriza MPs voted 'No', in what is a severe blow to Mr Tsipras. Insisting that money be kept from Greece pending the legislation of specific austerity measures, German Finance Ministry spokesman Martin Jaeger said, “We see no reason to release it.”. The EU establishment henceforth faces what it has always feared: a political war on two fronts at once, writes Ambrose Evans-Pritchard. In securing its bailout deal, Greece agreed to further austerity measures, which are bitterly opposed by many Greeks. From our political editor Peter Dominiczak: George Osborne has said he is "immovable" on the issue of British taxpayers' money being used to pay for new Greek loans. The Leftist prime minister has refused to head up a national unity government, and said he would consider his position if he did not gain the majority backing of his members. "The dramatic deterioration in debt sustainability points to the need for debt relief on a scale that would need to go well beyond what has been under consideration to date,” said the IMF in a confidential report. 'We are working hard for an honest and mutually beneficial deal, a deal without austerity, without the bailout which has destroyed Greece in recent years, a deal without the toxic presence of the (bailout inspecting) troika.'. Finance minister Magdalena Andersson has said his parliament will now have to debate the plans. The Greek government suffered a further financial blow this week when the European Financial Stability Facility refused its appeal for €1.2 billion. "The eurozone needs to foot its own bill," said Mr Osborne. Here's how the Greece crisis on July 15 unfolded Then there is the fact that the German finance minister Wolfgang Schäuble appears to have publicly split with Angela Merkel for the first time, saying that many Germans would still prefer a ‘Grexit' rather than the new deal. .css-8h1dth-Link{font-family:ReithSans,Helvetica,Arial,freesans,sans-serif;font-weight:700;-webkit-text-decoration:none;text-decoration:none;color:#FFFFFF;}.css-8h1dth-Link:hover,.css-8h1dth-Link:focus{-webkit-text-decoration:underline;text-decoration:underline;}Read about our approach to external linking. © 2020 BBC. The Greek parliament is not big on strict timetables. SWEDISH FINANCE MINISTER SAYS WILL NEED TO DISCUSS POSSIBLE USE OF EFSM FOR GREEK BRIDGE LOAN IN SWEDISH PARLIAMENT. “The economic adjustment process is more like a marathon than a sprint,” he said. We are no longer accepting comments on this article. He advised Merkel “not to allow a small cash flow issue, and a certain ‘institutional inertia’, to not (sic) turn into a large problem for Greece and for Europe.”. By air, boat and foot to deliver measles vaccines, The robot shop worker controlled by a faraway human. “You can keep on pushing it back indefinitely,” he added, “But in the meantime there will be no primary surplus because Greece is going down the drain.” He warned the current negotiations could lead to a “breakdown,” forcing Greece into a withdrawal from the euro. Where known, I added a checkmark (√) for items completed. ", #Greek bailout jumps first hurdle. Various scenarios for a Greece exit from the euro, or Greece running out of euros and being forced to begin using another form of currency, are being discussed in ruling circles. He adds that by just helping one eurozone country, and not the bloc as a whole, the Commission can get round its own prohibition. The final vote is expected to happen around 10pm UK time (though I wouldn't bank on it - these things usually drag on). The numbers look promising. "Greece is a member of the EU as well as a member of the euro. People stand outside the "Polyklikini", one of the hospitals affected by overhaul of the health sector. At they very least, a major reshuffle beckons. Ardent Greek supporter and Prime Minister Manuel Valls said the bail-out deal it was the only route out of the crisis. All but certain EFSM will be used for bridge loan to Greece, with protection for non-euros. I am sure that this struggle is going to bear fruit at some point. Privacy Policy | Chancellor George Osborne was in Brussels yesterday, and dismissed the idea as a "complete non-starter". Colin Freeman reports from Athens that the vote is now underway - finally. Our man in Athens, Colin Freeman, has been speaking to Syriza officials about the UK's objections to helping Greece secure some bridging financing. He also promised that a labour bill which had previously been scrapped by EU and International Monetary Fund lenders, would soon be presented alongside another one to deal with the 'humanitarian crisis' in Greece, he said. We don't support the bailout. Contact Video, 'We can't let her down again: we have to find her' Video, 'We can't let her down again: we have to find her', Civilians and BBC team flee shelling. Not surprisingly, the black market is thriving. The lower house National Assembly backed the agreement by 412 votes to 69. The plans are set to force the Government in to an embarrassing climbdown, riding roughshod over a “black and white” agreement the Prime Minister had brokered with fellow EU leaders promising the money would never be used to rescue a eurozone economy. Prominent Syriza Leftist, and energy minister Panagiotis Lafazanis has said that he will be among the 50 or so Syriza MPs that will not vote for tonight's bail-out deal. Also being withheld is €1.9 billion the ECB raised in profits made from its 2010 purchase of Greek government bonds. Tax discounts for the country’s popular tourist islands will also be abolished. With every day that passes, the cost is increasing. Tear gas, molotovs - scenes from the past #Tsipras hoped would never mark his premiership pic.twitter.com/h79zLqVS1d, Some confusion in Athens over whether parliamentarians will manage to vote on this deal tonight, @SpiegelPeter solved. Which means that there is not that much time left tonight for speeches (somewhat to the relief of the asembled hacks here in the press room), Colin Freeman reports. 'We are not in a hurry and we will not compromise,' Mr Tsipras told his party's lawmakers in parliament last week. After years of austerity demanded by Greece's international creditors - the latest passed by parliament on Sunday - Greeks wonder whether the sacrifices they made to stay in the euro zone were worth the pain. Lastly, comes a tweet from a Swedish MEP called Marita Ulvskog in which she likens the Finnish finance minister Alexander Stubb with those people who bullied her disabled sister in the school yard. I'm told details of @EU_Commission plan to use #EU-wide EFSM for #Greece bridge funds will be presented by @VDombrovskis at midday presser. But while the motion is expected to pass, Mr Tsipras has been forced to turn to pro-European opposition parties to get it through in the face of opposition from some 30 rebel lawmakers in his own radical left Syriza party, raising questions about his political survival.