Greek PM hails ‘historic’ deal to end debt crisis
ATHENS: Greek Prime Minister Alexis Tsipras on Friday hailed an agreement by Eurozone ministers that will put an end to the country’s eight-year bailout programme as an ‘historic’ step.
Eurozone states declared the severe debt crisis that has weighed heavy on the country since 2010 to be over, allowing Athens to escape some of the supervision of its creditors from August.
Wearing a tie for the first time since becoming prime minister in 2015 — after pledging to wear one only when Greece’s debt was cut — Tsipras told a celebratory meeting of coalition lawmakers on Friday night that the country could return to being a ‘social state’.
“Austerity will gradually be replaced by social justice,” he promised.
However, removing his tie at the end of the speech, he argued that ‘the Greek people had won a battle but not the war’.
Coming nearly a decade after Greece’s finances spun out of control, sparking three bailouts and threatening the country’s euro membership, he earlier declared the deal as an ‘historic agreement’.
“We are turning a page,” he added, but cautioned that the country “must not destroy the path taken on the reforms and on budgetery efforts.”
The eurozone ministers’ hardfought agreement was declared earlier Friday, slating Greece to leave its third financial rescue since 2010 on Aug 20.
“The Greek crisis ends here tonight,” said EU Economic Affairs Commissioner Pierre Moscovici, after the marathon talks in Luxembourg.
The deal was expected to be an easy one, but last-minute resistance by Germany — Greece’s long bailout nemesis and biggest creditor — dragged the talks on for six hours.
The ministers agreed to extend maturities by 10 years on major parts of its total debt obligations, a mountain that has reached close to double the country’s annual economic output.
They also agreed to disburse 15 billion euros (US$17.5 billion) to ease Greece’s exit from the rescue programme.
This would leave Greece with a hefty 24 billion euro safety cushion, officials said.— AFP