Saturday, July 11, 2015

The Greek parliament has adopted a proposal for an agreement with creditors … – Gazeta.pl

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The stormy debate in the Greek parliament on proposals agreement that Prime Minister Alexis Tsipras presented to creditors of Greece (these are: the European Central Bank, the International Monetary Fund, European Commission) lasted a few hours.

Syriza divided

Finally, the proposal agreement leftist Tsipras government with creditors to keep Greece in the monetary union, gained a majority in the 300-seat parliament, even though some members of the ruling Syrizy voted against, abstained or did not come to a vote.

favor of the government’s reform package and a savings of 251 Greek MPs were in favor, 32 against and and 8 abstentions.

The opposition supported the agreement

Among the eight members Syrizy who abstained from supporting a package of reforms and cuts were: Zoi parliament speaker and Minister for Konstantopulu. Panayiotakis Lafazanis energy. Absent for the vote was, among others, former finance minister Janis Warufakis, who reported on Twitter that he spends the weekend with his daughter, who soon returns to Australia.

The proposal agreement with creditors supported the most important Greek opposition party New Democracy. Tsipras after a victorious vote for himself said that the decision of parliament gives him a strong mandate to conclude negotiations with international creditors.

Tsipras: The rest of their time

– Parliament today gave the government a strong mandate to conclude the negotiations in order to achieve economically and socially equitable agreement with our partners – the head of the Greek government. – The priority now is to secure a positive outcome of the negotiations. All the other things will take care of in his time – he said, referring to members of his group who did not support the government’s proposal in the voting agreement.

Earlier Tsipras, speaking late at night, during a debate in the parliament argued that presented by his Government reforms difficult and painful cuts is the only chance for Greece to receive a new bailout package that will protect the country from insolvency and exit from the euro zone.

As noted, is aware that the proposed savings are contrary to election promises Syrizy and its program, but – as stated – the latest proposal involves an agreement with creditors to run such funds to help the Greek economy stand on its feet and recover from the crisis, if they are approved by lenders.

“We got to the line of demarcation”

Tsipras described the last months, as war, during which heavy fighting, while some battles have been lost. – Now I have the impression that we got to the demarcation line. From this place is just a minefield – he said.

As told Reuters, experts EC, ECB and IMF positively assessed the latest addition to the reforms and savings provided by Athens. On the basis of opinions and recommendations of experts from the three institutions, the Eurogroup finance ministers meeting today in Brussels will decide whether negotiations can begin the new scheme.

The positive decision of the ministers of the euro will open the way for granting Greece a bridging loan to cover current liabilities. Greece is in arrears with the repayment of the IMF loan installment of € 1.55 billion, and on July 20 the ECB has to repay 3.5 billion euros.

Weekend Breakthrough

If ministers reject proposals Athens either does not reach consensus on the launch of talks on a scheme that will convene on Sunday summit of euro zone and the whole EU. The leaders take a final attempt to reach a compromise, and in case of failure examine the consequences of the insolvency of Greece, including the possibility of providing humanitarian assistance to that State.

On Thursday evening, half an hour before the deadline, the Greek authorities sent to creditors on reform proposals necessary to receive the next bailout package Athens. About such support from the European Stability Mechanism (ESM), Greece requested on Wednesday.

What agreed to Athens

The numbering 13 pages document, which is called “Priority actions and commitments”, Greece agreed to implement almost all the measures, which demanded its creditors on 26 June. Then, Athens rejected these demands and announced that they will organize a referendum in which the Greeks were against the conditions of the aid offered by creditors.

Now the Prime Minister of Greece in exchange for reforms demands much more than in the previous month. The head of government wants to restructure Greek debt, as well as 53.5 billion euros to cover the liabilities by the end of June 2018. In return, Athens proposed, among others, VAT increase, reforming pensions and public administration.

The previous program of aid to Greece expired on 30 June. Athens did not receive the last installment of aid amounting to 7.2 billion euros, which Greece stood on the brink of insolvency.

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