The junior coalition party in Greece’s government says NO DEAL

The Europeans insisted on the Greek Parliament voting for these tough measures as they say Greece suffers from a huge “trust deficit” and that they need some assurance that the Greeks are honest about implementation.

Agreement on the opening of talks with Greece on a third bailout of up to €86 billion was reached by euro zone leaders in Brussels early yesterday after 17 hours of talks.

The terms imposed by global lenders led by Germany in all-night talks at an emergency summit obliged Tsipras to abandon promises of ending austerity.

But the bad news is Tsipras has to pass legislation reducing public pensions, hiking taxes and increasing privatization by Wednesday, measures which could conceivably cause his government to fall.

Tsipras himself, elected five months ago to end five years of suffocating austerity, said he and his team had “fought a tough battle” and had to make hard decisions. Mr Cameron has promised a referendum on Britain’s membership of the European Union before the end of 2017, in response to rising support for the anti-EU UK Independence Party and pressure from the eurosceptic wing of his Conservative Party. Without coming to an agreement involving Greek reforms for European cash, the crisis-ridden Mediterranean nation would be pushed out of the Eurozone. “If we are serious about the prospect of democracy we have to give this government a chance and see how far it can go”, he added. But the deal must now be ratified by the Greek Parliament, many of whose left-wing members have expressed stern opposition to the bailout.

President of the European Commission Jean-Claude Juncker: “The agreement was laborious, it took its time but it has concluded”.

Greece is still in the euro and may even stay in the euro, but the temporary solution reached this weekend does not mean a Grexit is out of the question, Barclays Capital told its clients on Monday. But “it’s in our DNA to be optimistic” so the country will simply have to make compromises and soldier on, she said. And I don’t think that the other Europeans were losing their face. “It is a typical European arrangement”.

On Wednesday, July 15, or Thursday, July 16: The 19 euro zone finance ministers will hold a conference call to assess Greek actions and recommend whether to move forward with the bailout program.

“The road will be long, and judging by the negotiations tonight, difficult”, said German Chancellor Angela Merkel.

The Bundestag is due to vote on Greece on Friday.

– Tsipras says the vote “is not a mandate of rupture with Europe, but a mandate that bolsters our negotiating strength to achieve a viable deal”.

But while Eurogroup ministers and financial traders around the world heave a sigh of relief, for Greece, the work is only just beginning. “Listen, it is some sort of victory but it is a pyrrhic victory because the measures are very strict”, said Marianna, 73.

Many eurozone countries “didn’t want to pay for the damage done” by Tsipras’ politics, he said.

“It was not pretty to watch”, he said.

But major stumbling blocks remain, and the Greek government believes that some of the measures demanded by creditors – such as a requirement to deposit 50 billion euro (£35.8 billion) worth of state-owned assets into a special fund for subsequent sell-off – appear intended to “humiliate” the Syriza administration. Greece’s arrears to the International Monetary Fund now total around 2 billion euros, International Monetary Fund spokesman Gerry Rice said in a statement.

Parliaments in several eurozone states also have to approve any new bailout.

On his return to Athens after the marathon negotiations, Greek Prime Minister Alexis Tsipras faced a mutiny of his leftist governing coalition as he seeks parliamentary approval for spending and pension cuts and tax increases.