German Parliament gives nod to Greek bailout talks

FOLLOWING MORE THAN 3 HOURS OF DEBATE, LAWMAKERS VOTED 439-119 IN FAVOUR OF OPENING DISCUSSIONS ON THE PACKAGE

BERLIN: Ger man lawmakers backed a new bailout plan for Greece on Friday after Chancellor Angela Merkel warned that the cash-strapped country would face chaos without a deal.

Following more than three hours of debate, German lawmakers voted 439-119 in favour of opening detailed discussions on the package. There were 40 abstentions.

The German Parliament’s vote capped a week in which the proposed bailout agreed by the 19 eurozone leaders Monday, including Merkel and Greek Prime Minister Alexis Tsipras, has cleared a string of hurdles.

The developments have raised expectations that Greece will secure a financial lifeline to allow the country to get back toward some sort of economic normality following weeks of crisis that’s seen banks shuttered for nearly three weeks and withdrawals at ATMs limited to a paltry 60 euros a day.

Germany is one of the few eurozone countries whose parliaments had to approve the step. Earlier Friday, Austrian lawmakers also cleared the way for the talks.

Though the broad outlines of the bailout were agreed Monday, specific terms will now be thrashed out between Greece and its European creditors.

The process is expected to last around four weeks and to lead to Greece getting around 85 billion euros ($93 billion) to help it pay off upcoming debts.

Germany has been the largest single contributor to Greece’s bailouts and has taken a hard line, insisting on stringent spending cuts, tax hikes and wide-ranging economic reforms in return.

“The principle ... of responsibility and solidarity that has guided us since the beginning of the European debt crisis marks the entire result from Monday,” Merkel told the special session of Parliament.