Greek parliament backs reforms for new bailout

During a late-night debate in Athens, Mr Tsipras acknowledged that the measures were a long way from the anti-austerity platform his party was elected on.

BRUSSELS-Greece’s economic proposals for a fresh bailout drew a lukewarm response Saturday, as European officials said the country would need EUR74 billion ($82.55 billion) in new funding over the coming years.

Greece is now seeking a three-year financing agreement that envisions capitulating to EU and European Central Bank demands for additional austerity measures.

That sentiment echoes much of the language in the run-up to the meeting.

(AP Photo/Thanassis Stavrakis). Greek Defense Minister Panos Kammenos, right, walks past Greece’s Prime Minister Alexis Tsipras during a parliament meeting in Athens, Saturday, July 11, 2015.

Greece is running out of time to convince its creditors.

Although given the fast pace of developments it was not clear whether Sunday’s summit would go ahead if the broad outlines of a deal are agreed earlier than that.

Greek banks are will remain closed until at least next Monday and cash machine withdrawals are limited to €60 per day. It would be the debt-strapped country’s third bailout.

The motion, which sought to authorize the government to use the proposal as a basis for negotiation with global creditors this weekend, passed 251-32, with eight voting “present” – a form of abstention – in the 300-member parliament. Following months of deteriorating relations, creditors are demanding firm legislative action to back up the proposals.

“I think we are here to make a lot more progress”, said Christine Lagarde, global Monetary Fund (IMF)Managing Director.

Syriza won election in January on a promise to throw off troika-mandated austerity that has pushed Greece’s unemployment rate above 25 percent even as the ratio of debt to gross domestic product has soared amid an economic contraction of more than 20 per cent.

“I want to state clearly, I am not afraid of Grexit”, he said, referring to the possibility of Greece leaving the euro.

Greek Prime Minister Alexis Tsipras said that the legislature “has given the government a strong mandate to complete the negotiation”, adding that “what matters now is the positive outcome”. A summit of the full 28-nation European Union in Brussels was to consider them on Sunday, with hopes for a deal before midnight.

The eurozone ministers have to give their blessing to Greece’s bailout request to the European Stability Mechanism. Traditionally, eurozone ministers agree by mutual consensus.

A German Finance Ministry spokesman declined comment on a Bild newspaper report that Finance Minister Wolfgang Schaeuble, disenchanted with Greece’s presence in the euro, saw Tsipras’s proposals as inadequate and opposed opening new talks.

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.

If there is to be a deal, “trust will be decisive”, said French Finance Minister Michel Sapin.