Greece passes austerity bill needed to open bailout negotiation

Greek prime minister Alexis Tsipras got the reforms through with the help of pro-European opposition parties.

Greek Finance Minister Euclid Tsakalotos gestures during a parliamentary session in Athens.

Valdis Dombrovskis who is the European Commission Vice President for the Euro and Social Dialogue, says what is needed now is stability in Greece.

European Central Bank head Mario Draghi faces a blizzard of questions about Greece at his news conference Thursday.

The announcement earlier this week of the possible deal was met with anger among many in Greece, who called it a “humiliation”.

Greek anti-austerity demonstrators threw Molotov cocktails at police in front of the country’s parliament building Wednesday, just as lawmakers began debate on tough demands by Athens’ worldwide lenders in exchange for a new bailout.

The package, which includes sweeping changes to labour laws, cuts to pensions, spending cuts and tax hikes, passed after 229 MPs voted in favour of the measures, with 64 voting against and six abstaining, the ABC reported.

They included Tsipras’ powerful energy minister, the speaker of parliament, and Yanis Varoufakis, the former finance minister who headed Greece’s bailout strategy until his replacement 10 days ago.

Riot police use their shields against petrol bombs lobbed by protesters during an anti-austerity protest on Thursday.

As To Vima online reports today, the Eurozone Finance Ministers discussed the vote that took place in Athens late on Wednesday, thus paving the way for the third bailout.

He said he would not shirk his responsibilities and would push forward with political and social reforms and the fight against corruption.

“I never believed that foreigners are to blame for all of Greece’s ills”, it’s the ruling class that’s the true enemy, he said in an impassioned speech. “But if something unexpected comes up, we don’t know how we will handle it. There is a sense of insecurity”. But I know we did something with the sense that we had no choice. “Nothing was certain and nothing is”, he told parliament. The draft bill is expected to be presented to the Parliament on Tuesday and would be voted on Wednesday.

However, Koutsomitis said he did not expect the prime minister to resign.

The economy ministry’s secretary general, Manos Manousakis, also resigned over the agreement.

With its banks dangerously low on liquidity and the state practically out of cash, Greece desperately needs funds.

Even if Athens carries out austerity programme it still won’t be able to pay back billions of Euros.

A new Greek bailout will take about a month to complete but the country’s financial state is dire.