Greek MPs gather for crucial vote on cutbacks… as IMF warns bailout deal will fail

Greek MPs are arriving at their parliament ahead of a vote on 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 introduce other laws in order to pave the way for a bailout worth €86bn (£61bn). They will have to decide whether to back prime minister Alexis Tsipras, who agreed a deal on Monday morning after all-night talks with eurozone leaders aimed at stopping the country plunging out of the euro. Measures being put to parliament to clear the way for the bailout include cuts in pensions and tax rises.

The policies imposed on us were irrational

Greek prime minister Alexis Tsipras

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.

I don’t think this is a gimmick or kicking the can down the road … If you were to give them 30 years grace you are allowing them in the meantime to bring down debt by … getting some growth back

Senior IMF official

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