Daily Key Events Report on the Greek Debt Crisis – July 16, 2015
New bailout deal gets approved by the Greek parliament but governing party suffers significant losses
Part of the prior actions demanded by creditors for the bridge financing and the third rescue package were voted during the early hours of Thursday. A total of 229 MPs (out of a total 300) voted in favor of the measures, 64 (including 32 from the governning party, SYRIZA) voted against, six voted present and one was absent. Among the government lawmakers who voted against the measures was former Finance Minister Yanis Varoufakis who told the parliament that the new bailout deal was like the Versailles treaty; another six SYRIZA MPs abstained. In a short address before the vote, Alexis Tsipras reiterated that the specific agreement was the only viable option available and challenged rebels within his party to propose an alternative way forward. Finance Minister Euclid Tsakalotos also noted that “I don’t know if we did the right thing, but I know we felt we had no choice”.
Last night’s vote left Alexis Tsipras, who had indicated he would likely step down from office if he did not gather the support of more than 121 of his party’s MPs, with the support of 124.
As lawmakers debated, Greek police clashed with anarchists taking part in an anti-austerity protest and hurling petrol bombs outside the parliament.
In the meantime, the French Parliament overwhelmingly backed the new Greek bailout agreement on Wednesday.
Brussels announced yesterday that it would press ahead with plans to use the European Financial Stabilisation Mechanism (EFSM) to provide a €7bn emergency loan to Greece, ignoring David Cameron’s objections to using also British taxpayer money (around €690m) to providing Greece with bridge financing. Eurogroup is scheduled to hold a conference call on Greece today.
A day after the IMF published its latest assessment, saying Greece would require extensive debt relief, the European Commission published its own assessment, according to which the reprofiling of the debt was possible, but without any write-offs, and only if Greece implemented reform measures demanded by its creditors.
Disclaimer: the “Daily Key Events Report”, which is composed by our Law Firm and provided to our clients as a complementary service on an ad hoc basis, aims to provide a snapshot of the key events that took place until its issuance, solely based on output from local and international media (print, online etc.). We thus hold no responsibility for the accuracy of the primary sources that we cite and acknowledge that the information contained herein may not represent real-time events or a comprehensive overview of media clippings. Please also note that the content of the Report does not reflect the personal views of the individual author and/or the Law Firm and does not in any way constitute legal advice.