Tsipras bailout plan for Greece scrutinised at home and abroad

Tsipras bailout plan for Greece scrutinised at home and abroad
By Alasdair Sandford
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Greek MPs and eurozone finance ministers are considering the prime minister's proposals to stave off bankruptcy, which are thought to give in to many creditors' demands.


The Greek prime minister’s late, late proposals to creditors to secure a rescue package and keep the country in the eurozone are being scrutinised at home and abroad.

In Athens a parliamentary commission has been meeting ahead of a later debate and vote involving all MPs.

Eurozone finance ministers are also examining the details; they are expected to give their verdict ahead of a full EU summit on Sunday.

Alexis Tsipras met members of the ruling Syriza party on Friday morning to seek their backing.

Several left-wing figures oppose the plan which would involve just the kind of austerity measures previously rejected by Alexis Tsipras himself – and Greek voters at last weekend’s referendum.

But the package is expected to be passed thanks to backing by opposition parties.

Five SYRIZA MPs call on government to reject deal, choose Grexit #Greece

— Kathimerini English (@ekathimerini) July 10, 2015

Meeting of Independent Greeks MPs to resume at 5.30 pm. #Kammenos now meeting with PM #Tsipras, local media report #Greece

— Kathimerini English (@ekathimerini) July 10, 2015

Athens has been asked to pass laws on “prior actions” to convince lenders of its intent on implementing reforms.

The proposals – which have been described as a climbdown or even capitulation by Athens – include raising taxes, pension reforms, spending cuts and privatisations.

It’s thought some debt restructuring may be offered in return.

We will be looking at the Greek proposals today. Instititutions assess. #Eurogroup tomorrow.

— Alexander Stubb (@alexstubb) July 10, 2015

Despite renewed optimism – the markets and the French government have responded positively – Greece’s banks are still in dire straits and some analysts say it’s far from certain that the plan will be enough to secure a deal.

The parties in Germany’s coalition government sent conflicting signals on the latest Greek reform proposals.

Tsipras and his cabinet spent Thursday putting the last-ditch cash-for-reforms package together.

Between now and the end of 2016, Greece proposes scrapping tax breaks for its islands and cutting defence spending by 300 million euros. The package would see VAT raised; and early retirement curbed.

In return, Athens is asking for 53.5 billion euros’ of funding to cover its loan obligations till the end of 2018.

European leaders are expected to announce their decision following Sunday’s summit.

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