This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/business/live/2015/jul/13/greek-crisis-tsipras-battle-bailout-deal-backlash-live

The article has changed 26 times. There is an RSS feed of changes available.

Version 2 Version 3
Greek crisis: Tsipras faces uphill battle to implement bailout deal - live updates Greek crisis: Tsipras could lose majority if Syriza MPs refuse to back bailout - live
(35 minutes later)
2.18pm BST14:18
Yanis Balafas, a Syriza lawmaker close to Alexis Tsipras, has also warned that the government could split badly over the deal.
He told Bloomberg:
“There’s a vista of division within the party, part of Syriza officials and lawmakers do not accept the tactics followed by our prime minister.”
But right now, the important thing is that the “worst case scenario” of Greece defaulting has been averted.
Tsipras is facing a SYRIZA mutiny when he arrives home in Athens http://t.co/Il6wCSmDyr pic.twitter.com/NZIpPGVWZW
2.16pm BST14:16
The main threat of a mutiny comes from Syriza’s hard-line wing, the Left Platform.
And there are already signs that they are unwilling to swallow the bailout deal.
Enikos, the Greek news site, explains:
The new bailout agreement signed by Alexis Tsipras is a humiliation for Greece, says an editorial in Iskra website which reflects the views of Syriza’s hardliners.
The article says that the agreement reestablishes and extends the guardianship of the Troika and seals “social enslavement”.
It maintains the country’s colonial status under German tutelage of the EU, it notes.
“The Greek people must not become disappointed, on the contrary it must remain stubborn, as it did in the referendum and the countrywide protests for a ‘No’ to the very end. A ‘No’ to clash with the bailout, neo-liberalism and austerity which are institutionalized in the euro zone.”
Panagiotis Lafazanis, the head of the Left Platform, abstained in last Friday’s vote on whether to accept the initial austerity deal, and could now be reshuffled.
1.51pm BST13:51
Analysts at Eurasia Group suspect Greece could soon head towards a national unity government, if many government MPs refuse to back the bailout deal on Wednesday night.
If Tsipras loses his majority and potentially even more support than he did on Saturday, it makes no sense for him to try and reshuffle the government.
In this case, he will instead likely choose to offer his and the support of the remaining Syriza MP’s towards a special purpose national unity government, but one which he will not head.
And that administration would sign off on a third bailout, overseeing some initial implementation, and then probably disband for elections in a few months’ time, “probably by autumn but certainly before December”.
[Tsipras’s coalition has 162 seats in the 300-seat parliament. But, at Friday night’s vote to approve negotiations eight MPs abstained, two voted no, and seven were absent].
1.43pm BST13:431.43pm BST13:43
Video: Tsipras is 'damaged goods'Video: Tsipras is 'damaged goods'
1.35pm BST13:351.35pm BST13:35
The Financial Times has some tantalising details of how last night’s marathon summit nearly collapsed around dawn today:The Financial Times has some tantalising details of how last night’s marathon summit nearly collapsed around dawn today:
They report:They report:
Alexis Tsipras of Greece and Angela Merkel, the German chancellor, decided after 14 hours of anguished talks that they had reached a dead end. With no room for compromise, neither saw any reason to carry on. Grexit was the only realistic optionAlexis Tsipras of Greece and Angela Merkel, the German chancellor, decided after 14 hours of anguished talks that they had reached a dead end. With no room for compromise, neither saw any reason to carry on. Grexit was the only realistic option
As the two leaders made for the door it was Donald Tusk, the president of the European Council, who moved to prevent the fatigue and frustration from triggering a historic rupture for the eurozone.As the two leaders made for the door it was Donald Tusk, the president of the European Council, who moved to prevent the fatigue and frustration from triggering a historic rupture for the eurozone.
“Sorry, but there is no way you are leaving this room,” the former Polish prime minister said.“Sorry, but there is no way you are leaving this room,” the former Polish prime minister said.
The dispute centred on the plan to put €50bn of Greek assets in a new fund. Merkel wanted it all used for debt repayment; Tsipras wanted a smaller fund, devoted to funding investment, to avoid national humiliation.The dispute centred on the plan to put €50bn of Greek assets in a new fund. Merkel wanted it all used for debt repayment; Tsipras wanted a smaller fund, devoted to funding investment, to avoid national humiliation.
In the end, they fudged it - with half used to recapitalise the banks and the other half split between debt repayments and investment.In the end, they fudged it - with half used to recapitalise the banks and the other half split between debt repayments and investment.
And as officials staggered into the morning light, they agreed that the Greek PM had come off worst:And as officials staggered into the morning light, they agreed that the Greek PM had come off worst:
“They crucified Tsipras in there,” a senior eurozone official who had attended the summit remarked. “Crucified.”“They crucified Tsipras in there,” a senior eurozone official who had attended the summit remarked. “Crucified.”
FT: “They crucified Tsipras in there,” a senior eurozone official who had attended the summit remarked. “Crucified.” European solidarity.FT: “They crucified Tsipras in there,” a senior eurozone official who had attended the summit remarked. “Crucified.” European solidarity.
That is on top of the ‘mental waterboarding’ which officials described to Ian Traynor last night.
#greece merkel/holland session with tsipras said to resemble 'extensive mental waterboarding' - top official
Updated at 2.03pm BST
1.25pm BST13:251.25pm BST13:25
1.22pm BST13:221.22pm BST13:22
French government welcomes dealFrench government welcomes deal
Kim WillsherKim Willsher
French prime minister Manuel Valls said the French parliament would vote on the Greek deal on Wednesday.French prime minister Manuel Valls said the French parliament would vote on the Greek deal on Wednesday.
Valls added he was “proud” of President François Hollande’s role in the agreement.Valls added he was “proud” of President François Hollande’s role in the agreement.
“François Hollande rose to the historic occasion,” he told BFM-TV.“François Hollande rose to the historic occasion,” he told BFM-TV.
“I am proud to be at the side of François Hollande and to succeed today what just a week ago seemed impossible. It’s a victory for Europe.”“I am proud to be at the side of François Hollande and to succeed today what just a week ago seemed impossible. It’s a victory for Europe.”
At a press conference after the deal was announced Hollande told journalists it was “an historic occasion”.At a press conference after the deal was announced Hollande told journalists it was “an historic occasion”.
“What I wanted was not just in the interests of Greece, it was in the interestS of Europe and of France. France’s own interests are not separate from those of Europe. France has a special role to play, she has to make sure that the process of construction that linked us following the war continues,” the French president said.“What I wanted was not just in the interests of Greece, it was in the interestS of Europe and of France. France’s own interests are not separate from those of Europe. France has a special role to play, she has to make sure that the process of construction that linked us following the war continues,” the French president said.
“There’s a willingness to embody a strength: the eurozone, a monetary zone that give stability and growth…France’s role has also been to seek to bring the parties together, to respect the Greek people while also respecting the other eurozone nations. France’s role is to find the right way for the eurozone and for Europe.”“There’s a willingness to embody a strength: the eurozone, a monetary zone that give stability and growth…France’s role has also been to seek to bring the parties together, to respect the Greek people while also respecting the other eurozone nations. France’s role is to find the right way for the eurozone and for Europe.”
The French magazine Capital described the deal as an “agreement delivered by forceps…after endless negotiations”.The French magazine Capital described the deal as an “agreement delivered by forceps…after endless negotiations”.
“The pill is still a bitter one for Alexis Tsipras’ radical left, which has made the battle against austerity its symbol to the (Greek) electorate,” Capital wrote.“The pill is still a bitter one for Alexis Tsipras’ radical left, which has made the battle against austerity its symbol to the (Greek) electorate,” Capital wrote.
Le Parisien added that the deal was possible thanks to the “French-German couple”, even though the two countries that form what French commentators call the “motor of Europe” were having difficulty “speaking with one voice” over Greece.Le Parisien added that the deal was possible thanks to the “French-German couple”, even though the two countries that form what French commentators call the “motor of Europe” were having difficulty “speaking with one voice” over Greece.
Both the extreme right and the extreme left lambasted the Greek deal.Both the extreme right and the extreme left lambasted the Greek deal.
On the far left, Jean-Luc Melenchon, co-president of the Front de Gauche, described it as “holding a revolver to Greece’s temple” and accused Hollande of being nothing but an “sidekick” to Angela Merkel.On the far left, Jean-Luc Melenchon, co-president of the Front de Gauche, described it as “holding a revolver to Greece’s temple” and accused Hollande of being nothing but an “sidekick” to Angela Merkel.
Florian Philippot of the Front National tweeted:Florian Philippot of the Front National tweeted:
“We are witnessing the horror of the European Union, we are in the process of saving the euro at any price…nobody is thinking of the Greeks…or the French taxpayers who will be broke after this deal.”“We are witnessing the horror of the European Union, we are in the process of saving the euro at any price…nobody is thinking of the Greeks…or the French taxpayers who will be broke after this deal.”
Personne n'a pensé aux Grecs, ni aux contribuables français, qui sortiront rincés de cet accord. Mais seulement à l'euro, par pure idéologiePersonne n'a pensé aux Grecs, ni aux contribuables français, qui sortiront rincés de cet accord. Mais seulement à l'euro, par pure idéologie
1.17pm BST13:171.17pm BST13:17
Here’s the full seven-page statement released by the European Council this morning, announcing the agreement with Greece.Here’s the full seven-page statement released by the European Council this morning, announcing the agreement with Greece.
Related: Greece debt agreement: the eurozone summit statement – in fullRelated: Greece debt agreement: the eurozone summit statement – in full
1.14pm BST13:141.14pm BST13:14
ECB leaves cap on Greek banks unchanged - reportsECB leaves cap on Greek banks unchanged - reports
The European Central Bank has decided to maintain the emergency liquidity assistance that has kept Greek banks afloat this year, sources say.The European Central Bank has decided to maintain the emergency liquidity assistance that has kept Greek banks afloat this year, sources say.
That means that it remains capped at €89bn, so capital controls remain in place and the Greek banks stay shut.That means that it remains capped at €89bn, so capital controls remain in place and the Greek banks stay shut.
1.10pm BST13:101.10pm BST13:10
Despite the extra austerity and reforms being heaped on Greece, Athens cafe owner Dimitris is mainly relieved that Grexit has been avoided.Despite the extra austerity and reforms being heaped on Greece, Athens cafe owner Dimitris is mainly relieved that Grexit has been avoided.
Dimitris told the Guardian:Dimitris told the Guardian:
“I’m not disappointed because the prime minister [Alexis Tsipras] couldn’t have done anything else. Leaving the euro would have been much worse.”“I’m not disappointed because the prime minister [Alexis Tsipras] couldn’t have done anything else. Leaving the euro would have been much worse.”
Related: Greece agreement is 'bad but still better than leaving the euro'Related: Greece agreement is 'bad but still better than leaving the euro'
1.04pm BST13:041.04pm BST13:04
Tsipras odds on to step down as PM this yearTsipras odds on to step down as PM this year
Alexis Tsipras is more likely than not to quit as Greek PM this year, reckons UK bookmakers Ladbrokes.Alexis Tsipras is more likely than not to quit as Greek PM this year, reckons UK bookmakers Ladbrokes.
They are offering evens that Tsipras celebrates New Year’s Eve in Maximos Mansion but only 8/11 that he has stepped down.They are offering evens that Tsipras celebrates New Year’s Eve in Maximos Mansion but only 8/11 that he has stepped down.
Greek PM Tsipras seen out of office by year-end, says @Ladbrokes. Offers odds of 8/11, meaning a 58% probability he won't last the year.Greek PM Tsipras seen out of office by year-end, says @Ladbrokes. Offers odds of 8/11, meaning a 58% probability he won't last the year.
The odds on Grexit this year have also widened, to 6/1 (bet €1, get €7 back)The odds on Grexit this year have also widened, to 6/1 (bet €1, get €7 back)
If you believe Greece will still be in the euro come 2016, tou have to speculate €12 to win €1 profit.If you believe Greece will still be in the euro come 2016, tou have to speculate €12 to win €1 profit.
12.55pm BST12:5512.55pm BST12:55
This is a “toxic deal” that will have political consequences in Greece, warned Wolf Piccoli of Teneo Intelligence:This is a “toxic deal” that will have political consequences in Greece, warned Wolf Piccoli of Teneo Intelligence:
In the short-term, Tsipras can stagger on, relying on the opposition to win the vote on Wednesday (15 July) and any other immediate vote (22 July) required by the lenders. The Greek PM might even reshuffle his cabinet in an effort to diminish the political weight of the most staunch opponents to the deal. But his authority and grip on the party is set to decline, making it harder for him to contain an almost inevitable rebellion within SYRIZA.In the short-term, Tsipras can stagger on, relying on the opposition to win the vote on Wednesday (15 July) and any other immediate vote (22 July) required by the lenders. The Greek PM might even reshuffle his cabinet in an effort to diminish the political weight of the most staunch opponents to the deal. But his authority and grip on the party is set to decline, making it harder for him to contain an almost inevitable rebellion within SYRIZA.
In fact, the government’s parliamentary majority is likely to end as soon as Wednesday after the vote on the measures requested by the lenders. At that point, Tsipras will be forced to either reconfigure the current governing arrangement by striking a deal with the mainstream opposition parties or call an early election.In fact, the government’s parliamentary majority is likely to end as soon as Wednesday after the vote on the measures requested by the lenders. At that point, Tsipras will be forced to either reconfigure the current governing arrangement by striking a deal with the mainstream opposition parties or call an early election.
12.45pm BST12:4512.45pm BST12:45
UK: Implementing Greek deal will be challengingUK: Implementing Greek deal will be challenging
A spokeswoman for British prime minister David Cameron has warned that there is more work to do to end the Greek crisis:A spokeswoman for British prime minister David Cameron has warned that there is more work to do to end the Greek crisis:
She told reporters this morning that:She told reporters this morning that:
“Clearly the challenge now will be on delivering on that [deal] and the implementation which lies ahead ... and I don’t think we underestimate the size of that challenge.“Clearly the challenge now will be on delivering on that [deal] and the implementation which lies ahead ... and I don’t think we underestimate the size of that challenge.
We are glad an agreement has been reached but there is still more to do.”We are glad an agreement has been reached but there is still more to do.”
12.42pm BST12:4212.42pm BST12:42
Newsflash from Berlin: The German parliament is likely to vote on the Greek bailout plan on Friday (assuming it gets through the Athens parliament on Wednesday)Newsflash from Berlin: The German parliament is likely to vote on the Greek bailout plan on Friday (assuming it gets through the Athens parliament on Wednesday)
#BREAKING German parliament vote on Greek bailout expected Friday: speaker#BREAKING German parliament vote on Greek bailout expected Friday: speaker
Updated at 12.42pm BSTUpdated at 12.42pm BST
12.39pm BST12:3912.39pm BST12:39
In Thessaloniki, people look to the futureIn Thessaloniki, people look to the future
Patrick KingsleyPatrick Kingsley
Withdrawing his daily allowance of 50 euros from a cashpoint next to the Bank of Greece in Thessaloniki, Spiros Mousionis smiled with relief at the deal.Withdrawing his daily allowance of 50 euros from a cashpoint next to the Bank of Greece in Thessaloniki, Spiros Mousionis smiled with relief at the deal.
“We feel much better now,” said the 66-year-old cotton trader, already looking forward to a day when he could take out more money from the bank.“We feel much better now,” said the 66-year-old cotton trader, already looking forward to a day when he could take out more money from the bank.
“I couldn’t have imagined a Greece outside the European Union and outside the Euro.”“I couldn’t have imagined a Greece outside the European Union and outside the Euro.”
The coming austerity would be tough, Mousionis said, but the only option.The coming austerity would be tough, Mousionis said, but the only option.
“I expect it, and I will deal with it. Maybe it’s better for us to have some discipline and order in our society.”“I expect it, and I will deal with it. Maybe it’s better for us to have some discipline and order in our society.”
A few kilometres away, standing outside his kidswear factory, Konstantinos Chantizaridis said the specifics of the new deal, if passed by parliament, would hit his business hard. They will mean that the owner of any business, however big or small, will have to pay corporation tax a year in advance.A few kilometres away, standing outside his kidswear factory, Konstantinos Chantizaridis said the specifics of the new deal, if passed by parliament, would hit his business hard. They will mean that the owner of any business, however big or small, will have to pay corporation tax a year in advance.
“We already paid 55% tax in advance [details], and now we have to pay 28% more on non-existent income,” Chantizaridis sighed.“We already paid 55% tax in advance [details], and now we have to pay 28% more on non-existent income,” Chantizaridis sighed.
“But we have to pay it to support the national economy.”“But we have to pay it to support the national economy.”
Even after five years of austerity, more financial pain was still the only option, he argued. “With this deal, we will keep our European passport and open up the banks – I can’t see any other advantages,” said Chantizaridis, who also doubles as the secretary-general of the Thessaloniki chamber of commerce.Even after five years of austerity, more financial pain was still the only option, he argued. “With this deal, we will keep our European passport and open up the banks – I can’t see any other advantages,” said Chantizaridis, who also doubles as the secretary-general of the Thessaloniki chamber of commerce.
“But at least with this environment, we know more or less what it means. If we’d gone back to the drachma, it would be very different to going back to the drachma we had in 2000. Now the country is not producing anything, and is mostly reliant on service industries like tourism. Leaving the euro would have been very hard.”“But at least with this environment, we know more or less what it means. If we’d gone back to the drachma, it would be very different to going back to the drachma we had in 2000. Now the country is not producing anything, and is mostly reliant on service industries like tourism. Leaving the euro would have been very hard.”
12.35pm BST12:3512.35pm BST12:35
If you’re looking to get up to speed on the Greek story, check out Jennifer Rankin’s latest news story from Brussels:If you’re looking to get up to speed on the Greek story, check out Jennifer Rankin’s latest news story from Brussels:
Related: Greece and eurozone reach agreement in bailout talksRelated: Greece and eurozone reach agreement in bailout talks
12.33pm BST12:3312.33pm BST12:33
Over in Greece, the backlash has begun... with a lot of anger being directed at Germany over the extra austerity that will now be heaped on the country.Over in Greece, the backlash has begun... with a lot of anger being directed at Germany over the extra austerity that will now be heaped on the country.
Reuters has a good take:Reuters has a good take:
“Listen, it is some sort of victory but it is a pyrrhic victory because the measures are very strict,” Marianna, 73, told Reuters on an Athens street.“Listen, it is some sort of victory but it is a pyrrhic victory because the measures are very strict,” Marianna, 73, told Reuters on an Athens street.
“People have suffered the past five years and there is more to come now. This is what makes things difficult for us. We wanted to stay in Europe, it goes without saying that we did. But what about the terms?”“People have suffered the past five years and there is more to come now. This is what makes things difficult for us. We wanted to stay in Europe, it goes without saying that we did. But what about the terms?”
Their economy pummelled by years of recession, their banks shut and dozens of businesses closing daily, some Greeks vented their anger on German Chancellor Angela Merkel and Finance Minister Wolfgang Schaeuble.Their economy pummelled by years of recession, their banks shut and dozens of businesses closing daily, some Greeks vented their anger on German Chancellor Angela Merkel and Finance Minister Wolfgang Schaeuble.
Newspapers laced the morning’s headlines with references to World War Two and railed against what they see as Berlin’s attempts to humiliate Greece as punishment for its resistance to another round of cuts.Newspapers laced the morning’s headlines with references to World War Two and railed against what they see as Berlin’s attempts to humiliate Greece as punishment for its resistance to another round of cuts.
12.20pm BST12:2012.20pm BST12:20
Introduction: Deal reached overnight, but more drama aheadIntroduction: Deal reached overnight, but more drama ahead
Good morning, and welcome to our rolling coverage after Greece’s government and its eurozone creditors reached an agreement to pave the way to a third Greek bailout.Good morning, and welcome to our rolling coverage after Greece’s government and its eurozone creditors reached an agreement to pave the way to a third Greek bailout.
Here’s the situation:Here’s the situation:
Greek PM Alexis Tsipras has conceded to a further swathe of austerity measures and economic reforms after more than 16 hours of negotiations in Brussels that began on Sunday afternoon and ran through the night.Greek PM Alexis Tsipras has conceded to a further swathe of austerity measures and economic reforms after more than 16 hours of negotiations in Brussels that began on Sunday afternoon and ran through the night.
He has agreed to immediately pass laws to further reform the tax and pension system, liberalise the labour market, and open up closed professions. Sunday trading laws will be relaxed, and even milk producers and bakers will be deregulated.He has agreed to immediately pass laws to further reform the tax and pension system, liberalise the labour market, and open up closed professions. Sunday trading laws will be relaxed, and even milk producers and bakers will be deregulated.
The FT has dubbed it:The FT has dubbed it:
The most intrusive economic supervision programme ever mounted in the EU.The most intrusive economic supervision programme ever mounted in the EU.
Greece was forced to accept these measures after Germany piled intense pressure, as a price for a new deal. EU officials told us that Tsipras was subjected to “mental waterboarding” in closed-door meetings with Angela Merkel, Donald Tusk and Francois Hollande.Greece was forced to accept these measures after Germany piled intense pressure, as a price for a new deal. EU officials told us that Tsipras was subjected to “mental waterboarding” in closed-door meetings with Angela Merkel, Donald Tusk and Francois Hollande.
The plan must now be approved by the Athens parliament by Wednesday, and then voted through various national parliaments. If agreement is reached, talks can then begin towards a a new three-year bailout worth up to €86bn (£61bn), accompanied by further monitoring by Greece’s creditors.The plan must now be approved by the Athens parliament by Wednesday, and then voted through various national parliaments. If agreement is reached, talks can then begin towards a a new three-year bailout worth up to €86bn (£61bn), accompanied by further monitoring by Greece’s creditors.
The deal comes after Greece’s five-month battle with its creditors, which has gripped the eurozone, dominated the political agenda and alarmed the markets.The deal comes after Greece’s five-month battle with its creditors, which has gripped the eurozone, dominated the political agenda and alarmed the markets.
Emerging from the summit, Tsipras admitted it had been tough - but insisted he had won concessions on debt relief (sometime in the future) as well as the medium-term funding plan.Emerging from the summit, Tsipras admitted it had been tough - but insisted he had won concessions on debt relief (sometime in the future) as well as the medium-term funding plan.
He also managed to persuade the eurozone that a new investment fund, that will manage and sell off €50bn Greek assets, would be based in Athens not Luxembourg.He also managed to persuade the eurozone that a new investment fund, that will manage and sell off €50bn Greek assets, would be based in Athens not Luxembourg.
But generally, Tsipras appears to have finally capitulated in the face of threats that Greece would be ejected from the eurozone.But generally, Tsipras appears to have finally capitulated in the face of threats that Greece would be ejected from the eurozone.
For the full story details, check out out earlier liveblog of the events in Brussels on Sunday, and Monday morning.For the full story details, check out out earlier liveblog of the events in Brussels on Sunday, and Monday morning.
Related: Greek debt crisis: deal reached after marathon all-night summit - liveRelated: Greek debt crisis: deal reached after marathon all-night summit - live
Attention now turns to Athens, where Tsipras will arrive home to swirling speculation of cabinet reshuffles, unity governments and even fresh elections.Attention now turns to Athens, where Tsipras will arrive home to swirling speculation of cabinet reshuffles, unity governments and even fresh elections.
Meanwhile eurozone finance ministers will be meeting in Brussels, for the third day running, to discuss urgently needed bridge financing.Meanwhile eurozone finance ministers will be meeting in Brussels, for the third day running, to discuss urgently needed bridge financing.
We’ll be tracking all the reaction through the day....We’ll be tracking all the reaction through the day....
Updated at 12.55pm BSTUpdated at 12.55pm BST