EU approves Greece’s €86-billion bailout

The approval comes after six hours of talks to nail down the tough and far-reaching reforms Athens must implement in return. Unable to borrow on the worldwide markets, another bailout is all that stands between Greece and a disorderly default on its debts – as soon as next week – that would force it out of Europe’s joint currency.

“The message of today’s (meeting) is loud and clear: on this basis, Greece is and will irreversibly remain a member of the euro area”, he said.

Final approval in countries including Germany and the Netherlands hinges on parliamentary votes next week.

A third of MPs in Tsipras’s radical-left party Syriza rebelled against him in Friday’s vote and he only managed to push the deal through with the help of the opposition – raising fresh speculation he will be forced to call early elections.

The government of Prime Minister Alexis Tsipras completed its abrupt about-face by accepting even more restrictive austerity terms from the rest of the eurozone last month after a July 5 referendum rejected worldwide creditors’ demands for austerity measures.

The worldwide Monetary Fund is reluctant to take part in the new rescue package unless the Europeans can agree on some form of relief for Greece’s debt mountain – equivalent to 170 percent of GDP – to bring it down to a sustainable level.

Eurozone finance ministers were expected to approve the vital aid for Athens by the end of the day.

Of that, 10 billion euros would be reserved to recapitalize Greek banks ravaged by economic turmoil and the imposition of capital controls in June, and 13 billion euros would be in Athens on Thursday to meet pressing debt payment obligations.

Greek Finance Minister Euclid Tsakalotos praised the deal as one that “takes Greece forward in the sense that the financial system should be much more stable from now onwards”.

A government official said Mr Tsipras would seek a confidence vote after Greece made the August 20 debt repayment.

“Syriza accepted a new, third bailout – austerity 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”.

The bailout was only passed with the support of opposition parties.

A second tranche up to 15 billion euros can be made available no later than November 15, which aims “for banking recapitalisation and resolution needs”, the statement said.

“The fight against the new bailout starts today, by mobilizing people in every corner of the country“, said a statement signed by Lafazanis and 11 other Syriza members and posted on the far-left faction’s Iskra website.

Greek media, however, is reporting that the number of government MPs who voted in favour of the deal was not enough for Tsipras to avoid a confidence vote.