Eurozone should decide bailout on Friday: Sapin

The deal must still be approved by parliaments in several European countries to go ahead – notably in Germany, Europe’s effective paymaster, where lawmakers are set to vote on Wednesday.


Creditors estimate Greek banks need 25 billion in capital soon, but discussion has focussed on providing only 10 billion now and the rest later if Greece meets conditions – partly to avoid rejection of the deal by the German and other parliaments which must give their blessing to the bailout next week.

The vote was passed with 222 votes in favor, 64 against, 11 abstentions and three absent in the 300-member parliament.

For Prime Minister Alexis Tsipras, the deal will come at a high cost, as more than 40 Syriza MPs voted against him in the negotiations last night, and he was forced to rely on support from the opposition to get the deal through.

If Tsipras loses the confidence vote – which is expected to be held after August 20 – it could trigger a snap election. “If we don’t find a solution, we will have to do bridge financing“, he said, referring to a short-term loan so Greece can make its next debt payment on August. 20.

Still, some of those who rebelled against Mr Tsipras on Friday could still opt to support the government in a confidence vote – as could other pro-European parties like the centrist Potami and the centre-left PASOK, leaving unclear the final outcome.

Syriza dissenters angrily challenged the government during the all-night parliamentary session.

“Syriza accepted a new, third bailoutausterity that goes against its program and pledges”, Lafazanis told Efimerida Ton Syntakton newspaper, adding that this “will open the way for a mutation of Syriza with an uncertain ending”. Lafazanis signed a declaration with another 12 left-wing politicians Thursday saying they would start a new anti-austerity movement. He stopped short of quitting Syriza outright, however.

Jeroen Dijsselbloem, the Dutch finance minister who presides over the meetings with his counterparts, said he still expects criticism of the proposed program, which was agreed between Greece and the institutions overseeing eurozone bailouts-the European Commission, the ECB and the IMF-earlier this week.

Defending the bailout, Mr Tsipras insisted: “We took the decision to remain alive instead of committing suicide and complaining how unfair it was”.

Officials said the International Monetary Fund needed more assurances and details on Greek reforms, notably to pensions, and steps to persuade it that Greece’s debt burden was sustainable.

“Thus, it is equally critical for medium- and long-term debt sustainability that Greece’s European partners make concrete commitments”.


The first tranche of loans will be for 26 billion euros ($28 billion).

Eurozone finance ministers back third Greek bailout