Greece Debt Crisis: Lawmakers Approve Reforms as Basis for Talks

Greek lawmakers have approved a government motion seeking authorization for reform proposals as a basis for negotiations for a third bailout in talks with global creditors this weekend.

A vote was expected at about 3 a.m. Saturday.

Tsipras told parliament the plan was “marginally better” than the proposals put forward by the creditors last month and that Greeks would “succeed not only in staying in Europe but in living as equal peers with dignity and pride”. “I’ll first await the verdict from these institutions”, Dijsselbloem said.

“From here on there is a minefield, and I don’t have the right to dismiss this or hide it from the Greek people”.

The measures include tax hikes and deep spending cuts, including on pensions, that the government had so far resisted.

It urged Greece to quickly improve its reform proposals and seek parliamentary support for a fund to sell 50 billion euros in financial instruments to reduce the debt burden.

But Germany is sceptical of the plans after five months of stuttering negotiations – it has previously been Greece’s biggest creditor in two previous bailouts totalling 240 bn euros.

The finance ministers will have to determine whether Greece’s latest proposal for its third financial bailout since 2010 should be considered.

Underlining the unhappiness of many on the left at the government’s apparent embrace of austerity, a few thousand demonstrators gathered in front of parliament before the vote to protest against the measures.

Schaeuble accused the leftist Greek government of Alexis Tsipras of completely destroying confidence among his eurozone partners and said Athens had to come up with more than words.

Experts from the European Commission, the European Central Bank and the worldwide Monetary Fund had reviewed the Greek aid request and reform proposals on Friday.

However, despite French President Francois Hollande describing the measures as “serious and credible”, it has emerged that Germany is unlikely to agree to the new package.

In Finland, another hard-hit eurozone country, there were reports that the coalition government was balking at further assistance for Greece – a failure to give Greece a rescue package could see the country ‘s economy collapse.

Jeroen Dijsselbloem, who chairs the meeting of eurozone finance ministers said “the issue of credibility and trust was discussed” and overall the Greek bailout talks are “still very hard”. “If this is the eurozone, we don’t care if we go out or in”.

“Can we expect something better, or is it Armageddon?”

Others adopted a wait-and-see approach. All money transfers overseas, including bill payments, were banned without special permission.

Alternate Finance Minister Dimitris Mardas said the banks would be gradually restored to operation.

The finance ministers’ meeting is meant to reach a final verdict ahead of a make-or-break European Union summit on Sunday.

Bank closures in Greece have been extended until Monday and Greeks are limited to withdrawing just 60 euro (£43) per day after the imposition of capital controls.

Tsipras won the backing of 251 out of 300 deputies for his reform plans, even though they are similar to the ones that Greeks rejected in the referendum after he branded them “humiliating”.