New bailout reforms approved in Greek parliament

Second bailout reforms passed by Greek government, paving way to talks over final suggestions

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

The Greek parliament has agreed to new economic reforms in order to secure a third bailout deal from its creditors.

The debate started on Wednesday afternoon and reached its final stage at 04:00 local time on Thursday morning.

Greek Prime Minister Alexis Tsipras faced a rally within his own party with the majority of the lawmakers “rebelling” against the new reforms and measures set by the EU last week.

The third bailout to be signed is a €86 billion loan which has been granted under conditions which contradict the country’s July 5 referendum, where the majority of Greek citizens turned down the creditors’ demands.

Tsipras managed to overcome the rebellion in his party and proceeded in reshuffling main ministry positions of the government.

Former finance minister Yanis Varoufakis put aside his objections on the new measures and voted for the government’s reforms, stating that he seeks unity within the ruling Syriza party.

During the debate, central Athens’ infamous Syntagma Square outside the parliament building was again packed with violent protests against the new reforms.

The country suffered more violent scenes last week while police clashed with protesters outside the parliament building, as MPs voted on the bailout plan.

Tsipras noted that the new reforms are a necessary way out for the country, emphasising he is not happy about the measures laid out by  the creditors.

"We have chosen a compromise that forces us to implement a programme in which we do not believe, and we will implement it because the alternatives are tough," he said.

"We are summoned today to legislate under a state of emergency," he added.

The third bailout negotiations will start on Friday.

TRTWorld and agencies