Anger as Greek MPs debate cutbacks… after IMF warns bailout deal will fail

Angry scenes erupted in the Greek parliament as MPs began debating measures aimed at saving their economy – hours after financial analysts cast doubt on whether they would even work. The deputies, as members of parliament are called, will decide later whether to raise taxes and cut pensions to pave the way for a bailout worth €86bn (£61bn). Their vote will also determine the future of prime minister Alexis Tsipras, who agreed a deal with eurozone leaders on Monday. Tempers flared as one deputy ripped up his parliamentary papers in disgust and threw them across the chamber. Earlier, deputy finance minister Nadia Valavani has resigned, saying she cannot support the austerity measures in the deal.

I’m not going to vote for this amendment and this means I cannot stay in the government

Deputy finance minister Nadia Valavani

But the vote comes as one of Greece’s major creditors cast doubt over whether the overall package of measures – which includes a foreign takeover of state-owned businesses – will be enough to ensure the country recovers. The International Monetary Fund said Greece has taken on “highly unsustainable” debt and will be unable to keep up its repayments even after the new deal. It said the only way Greece could emerge from the crisis is if some of the debts are restructured – possibly by extending the period of repayment or even by writing off some of them. Meanwhile, Greece’s finance ministry says the banks will remain closed through Thursday. However, the transactions that can be carried out at the few bank branches that are allowed to open are being broadened.

A prime minister must fight, speak the truth, take decisions and not run away

Alexis Tsipras

Greece debt Business