Greece deal on a knife-edge

DEBT: STRUGGLE TO JUGGLE MANY INTERESTS Tsipras must keep his creditors as well as his electorate on the same page – for package to balance.

Athens

Greek lawmakers reacted angrily yesterday to concessions which Athens offered in debt talks, and parliament’s deputy speaker warned that the proposals would struggle to win approval with the electorate – puncturing optimism that a deal out of the crisis might be quickly sealed.

European leaders earlier had welcomed the new budget proposals from Athens as a basis for a possible agreement to unlock frozen aid and avert a default that could trigger a Greek exit from the eurozone.

Stock markets also welcomed the plan, with European shares climbing to a threeweek high yesterday.

But Prime Minister Alexis Tsipras must keep his leftist Syriza party as well as his creditors onside for a deal to stick.

“I believe that this programme as we see it ... is difficult to pass by us,” deputy parliament speaker and Syriza lawmaker Alexis Mitropoulos said on TV.

If parliament does fail to back the latest offer, which included higher taxes and welfare changes, and steps to curtail early retirement, Tsipras might be forced to call a snap election or a referendum.

“I believe (the measures) are not in line with the principles of the left. This social carnage ... they cannot accept it,” said Mitropoulos.

European Council president Donald Tusk called the Greek proposals “a positive step”. He said the aim was to have the Eurogroup finance ministers approve a reform package by this evening and put it to euro zone leaders for final endorsement tomorrow morning.

German Chancellor Angela Merkel was more cautious, saying there were no guarantees for a final agreement reached.