Climbdown: Greece leader says he will accept bailout offer… with conditions

Greece’s Prime Minister Alexis Tsipras says his country will accept a bailout offer with several conditions. In a dramatic climbdown, he wrote a letter to creditors that said Greece would accept terms published by the European Commission on Sunday but with a number of amendments. They included maintaining a reduction on value-added tax for Greek islands - vital for tourism - and maintaining a pension supplement for the richest beneficiaries for the time being. Greeks are due to vote on Sunday in a referendum on the proposed bailout deal, with most observers expecting a resounding rejection.

If Europe’s not growing the way it needs to grow, that has an impact on us. … That can have a dampening effect on the entire world economy.

President Barack Obama

The move comes after Mr Tsipras previously rejected measures that the creditors wanted Greece adhere to in exchange for further bailouts. The ‘No’ vote lead narrowed significantly after banks were closed this week, according to an opinion poll published on Wednesday. The poll, by the ProRata institute published in the Efimerida ton Syntatkton newspaper, showed 54 percent of those planning to vote would oppose the bailout against 33 percent in favour. French Finance Minister Michel Sapin is hoping for an agreement with Greece before Sunday’s referendum but called the situation “terrifyingly complicated.”

If Greece votes yes, negotiations will continue in difficult conditions, but we’d be able to quickly find an agreement.

French Finance Minister Michel Sapin

Greece Business