Greek bailout moves ahead after Germany gives its backing

The bailout of Greece cleared some further key hurdles Friday after German lawmakers overwhelmingly gave their backing to another financial rescue and the European Union said it would release an interim loan that will ensure Athens avoids an imminent debt default. The developments, along with Greek parliamentary approval early Thursday of creditor-demanded austerity measures, prompted a positive assessment from Europe’s bailout fund, which approved a “decision to grant, in principle, stability support to Greece in the form of a loan program.” Prime Minister Alexis Tsipras, meanwhile, made changes to his government after he faced a rebellion in his party’s ranks over the austerity measures, replacing two ministers who voted against him and changing another eight ministers or deputy ministers.

This agreement offers a chance to put the Greek economy back on track. It’s not going to be easy. We are certain to encounter problems in the years to come. But I believe we will be able to resolve them.

Jeroen Dijsselbloem, the eurozone’s top official who also chairs the ESM board

Though the broad outlines of the Greek bailout were agreed on Monday by the eurozone’s 19 leaders, the decision by the bailout fund known as the European Stability Mechanism formally kick-starts the process by which Greece negotiates the details. In recent weeks, the Greek economy has suffered a number of shocks as the country’s euro future was on the line. The hope now is that the banks, which have been shut for the past three weeks, will reopen soon and that the paltry 60-euros-a-day withdrawal limit at ATMs will be raised.

Greece Europe