Greek PM wins backing for concessions; EU, IMF give positive signals

The measures, which received an initial nod from European Union and International Monetary Fund officials before a meeting of euro zone finance ministers on July 11, were passed with the support of pro-European opposition parties.

With Greece's banks shut and completely dependent on a credit lifeline from the European Central Bank, the measures were seen as a last chance to avert the collapse of the financial system and prevent Greece from being pushed out of the euro.

In an ominous sign for the stability of the government, however, 10 deputies on the ruling benches either abstained or voted against the measures and another 7 were not present, leaving Tsipras short of the 151 seats needed for a majority of his own.

Prominent leftwingers in the governing Syriza party signaled before the vote that they could not support the mix of tax hikes and spending cuts proposed by Tsipras, following the rejection of similar austerity measures by voters in Sunday's referendum.

Energy Minister Panagiotis Lafazanis, Deputy Labour Minister Dimitris Stratoulis as well as the speaker of parliament, Zoe Constantopoulou, all called "Present", in effect abstaining from the vote and withholding their support from the government.

"The government is being totally blackmailed to acquiesce to something which does not reflect what it represents," Constantopoulou said.

Following the vote in parliament, where many leftists in his own party were stunned by his acceptance of previously spurned austerity measures, Tsipras said he would now focus on securing a deal.

"The parliament today gave the government a strong mandate to complete the negotiations and reach an economically viable and socially fair agreement with its partners," Tsipras said.

"The priority now is to have a positive outcome to the negotiations. Everything else in its own time."

Experts from the European Commission, ECB and the IMF spent July 10 reviewing the Greek case for aid and the proposals for economic reforms that will be conditions for any loans.

A person close to the matter told Reuters that EU and IMF officials had given euro zone governments a positive initial assessment of Greece's request for a new bailout.

The positive evaluation, along with a conclusion that Athens needs a total of some 74 billion euros to meet its obligations, will form a key part of discussions among euro zone finance ministers when they meet in Brussels at 3 p.m. (1300 GMT).

But after the jubilation in Athens on July 12 following the resounding rejection of further austerity in a referendum, there was bitterness that parliament was being asked to accept a strikingly similar package of measures.

US Treasury Secretary Jack Lew said Greece and its creditors appeared to be closer to a deal, calling for an adjustment to Athens' debt burden to ease its cash flow.

Greece still has to overcome hardening attitudes toward it among euro zone partners.
Greece asked for 53.5 billion euros ($59 billion) to help cover its debts until 2018, a review of primary surplus targets in the light of the sharp deterioration of its economy, and a "reprofiling" of the country's long-term debt.