Greece is back to the square one. The debt crisis ridden country gets bailout deal but with a heavy price. The deal is just an assurance that Greece will get help if it abides by the EU Terms. And the fresh are harsher than those it rejected in referendum. The EU have simply agreed to open negotiations on a €86bn (£62bn) bailout – a vital step to restore confidence in the euro, but essentially an agreement to have more talks. The deal that emerged on Monday morning must pass the test of the Greek parliament, the German Bundestag and the European financial system. The EU will monitor the spending and will keep financial controls. In other words, now EU will decide how the Greek economy will be run. European creditors have agreed to release 7 billion Euros to save Greece's banks from collapse. Greek banks have been shut since 28 June and a daily limit of €60 on cash withdrawals is likely to remain in place even when they re-open. Getting new sources of funding to repay €12bn in debts falling due over the next month is Greece's urgent requirement. EU will lend 5bn euros by August. In return Prime Minister Alexis Tsipras will have to pass a series laws by Wednesday to get the first instalment of bailout package.The laws cover four contentious areas:overhauling the VAT system to standardise rates and increase revenue;reforming pensions by increasing the retirement age to 67 by 2022 and cutting benefits for poorer pensioners;ensuring the Elstat statistics agency is free of political influence – a guarantee that Greece can never again fudge official statistics; anda legal mechanism that ensures automatic spending cuts if Greece deviates from creditor-mandated budget targets. A further two bills-an overhaul of the civil justice system; and transposing an EU directive on winding up filed banks into national law- must be passed by 22 July.
Its only If the Greek parliament passes these laws, eurozone finance ministers will take a decision to launch formal talks on a new €86bn bailout deal under the European Stability Mechanism, the permanent bailout fund. Eurozone countries that ratify bailouts in parliament are likely to hold votes. But Angela Merkel, the German chancellor, has said she would not recall Bundestag deputies from their holidays until she was sure Greece had made good on promises to pass reform laws.Greeks are angry with Prime Miniser as he has let them down.Greeks feel that the tough reforms agreed to by their Prime Minister condemned the country to 'misery, humiliation and slavery'. The Country Greek civil service workers have announced a 24-hour strike in the wake of bailout deal.There are reports that Prime Minister Alexis Tsipras was 'crucified' during marathon overnight talks or ‘aGreekment' Whatever may be the case, but Prime Minister has badly failed in leading the country to an honourable package. The real test of the latest eurozone deal comes on Monday 20 July when Greece must repay at least €3.5bn to the European Central Bank.
Its only If the Greek parliament passes these laws, eurozone finance ministers will take a decision to launch formal talks on a new €86bn bailout deal under the European Stability Mechanism, the permanent bailout fund. Eurozone countries that ratify bailouts in parliament are likely to hold votes. But Angela Merkel, the German chancellor, has said she would not recall Bundestag deputies from their holidays until she was sure Greece had made good on promises to pass reform laws.Greeks are angry with Prime Miniser as he has let them down.Greeks feel that the tough reforms agreed to by their Prime Minister condemned the country to 'misery, humiliation and slavery'. The Country Greek civil service workers have announced a 24-hour strike in the wake of bailout deal.There are reports that Prime Minister Alexis Tsipras was 'crucified' during marathon overnight talks or ‘aGreekment' Whatever may be the case, but Prime Minister has badly failed in leading the country to an honourable package. The real test of the latest eurozone deal comes on Monday 20 July when Greece must repay at least €3.5bn to the European Central Bank.