Greece passes reform bill

Source:AFP Published: 2015-7-24 0:23:01

Creditors set to arrive in Athens for bailout talks


Greece's parliament on Thursday approved a second batch of reforms needed to help unlock a huge international bailout for the stricken economy.

The bill passed by a resounding 230 votes out of the 298 members of parliament present, after a marathon debate stretching into the early hours that nonetheless exposed deep divisions in the governing Syriza party.

The legislation covers changes to the civil justice system, a bank deposit protection scheme and measures to shore up the liquidity of Greece's banks - reforms that had to pass if Athens was to move forward in bailout negotiations with its creditors.

While the new law will come as a relief to Prime Minister Alexis Tsipras - who is negotiating a new bailout worth up to 86 billion euros ($93 billion) over three years - it saw him suffer a major rebellion amongst MPs in his leftist Syriza party for the second time in a week.

Thursday's vote was seen as a key test of Tsipras' authority after he was forced to reshuffle his cabinet following a mutiny by nearly a fifth of his MPs in a separate vote on the first tranche of tough economic reforms demanded by Athens' creditors.

While the prime minister trimmed the rebellion from 39 "no" votes and abstentions last week to 36 on Thursday, in both cases he was forced to rely on opposition parties to get the legislation passed.

Government spokeswoman Olga Gerovassili admitted the government was facing a "political problem" and said "planned procedures" would be implemented to address it.

"The divide in the parliamentary majority is clear," she told reporters after the vote.

Greece's creditors will fly to Athens in the coming days to launch talks on a huge bailout for the debt-crippled country, officials said on Thursday.

The Greek finance ministry said negotiators from the European Union, European Central Bank and International Monetary Fund with whom it is discussing plans for a third bailout over three years were likely to fly in on Friday.

A European source said it was not certain that Friday would see the opening of the talks, adding, "Our people haven't bought their airline tickets yet."

Greece and its creditors last week struck a bailout-for-reforms deal aimed at preventing Athens from crashing out of the eurozone as it struggles to pay its enormous debts.

European shares rose at the start of trading on Thursday on the news, with London's FTSE up 0.65 percent, and Frankfurt's DAX 30 and Paris's CAC 40 advancing 0.79 percent.



Posted in: Europe

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