Greek MPs pave the way for new bailout despite opposition

Syriza revolt and street clashes over tough new measures

Greek MPs were poised last night to accept tough economic measures that will pave the way for a new 86 billion euro bailout – despite a revolt by members of the governing left-wing Syriza party.

Prime Minister Alexis Tsipras said he did not believe in the new Bill, which includes consumer tax increases and pension reforms that will condemn Greeks to years of more economic hardship, but urged MPs to agree to the measures in order to avoid financial collapse and prevent Greece from crashing out of Europe’s joint currency.

Mr Tsipras agreed to a deal after a marathon 17-hour eurozone summit that called for Greece to pass new austerity measures his Government had long battled against, in return for the start of negotiations on a third bailout worth about £60bn in loans over three years.

But the Bill last night fuelled anger among Syriza members in Parliament and sparked clashes in the streets as Greek politicians debated the contentious measures. Rioters hurled petrol bombs at police, who responded with tear gas as an anti-austerity demonstration outside parliament turned violent. Groups of youths smashed shop fronts and set vehicles alight and at least 50 people were arrested.

Large numbers of Syriza politicians voted against the package, although the Bill was expected to pass with support from pro-European opposition parties.

Mr Tsipras has acknowledged that the measures he agreed to go against his election pledges to repeal austerity and described them in a television interview as “irrational”.

“I must tell you that Monday morning at 9.30, it was the most difficult day of my life. It was a decision that will weigh on me for the rest of my life,” finance minister Euclid Tsakalotos said.

“I don’t know if we did the right thing. But I know we did something with the sense that we had no choice. Nothing was certain and nothing is.”

Alternate finance minister Nadia Valavani and the economy ministry’s secretary-general Manos Manousakis both resigned over the agreement, while another top minister, energy minister Panagiotis Lafazanis, described the deal as “unacceptable” and called on Mr Tsipras to withdraw it.

With banks dangerously low on liquidity, Greece desperately needs funds.

It faces a Monday deadline to repay 4.2bn euros to the European Central Bank and is also in arrears on 2bn euros to the International Monetary Fund.