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Greek rescue deal: political tumult beckons as Alexis Tsipras returns home Greek rescue deal: political tumult beckons as Alexis Tsipras returns home
(34 minutes later)
For the Greek prime minister, Alexis Tsipras, the hard work begins now. The rescue deal hammered out in Brussels may have brought relief to Athens but its battle-hardened government knows that it also comes at enormous cost.For the Greek prime minister, Alexis Tsipras, the hard work begins now. The rescue deal hammered out in Brussels may have brought relief to Athens but its battle-hardened government knows that it also comes at enormous cost.
Within minutes of Tsipras giving his “victory” speech, some in his Syriza party were denouncing the bailout accord – the third emergency funding programme for the debt-stricken country since 2010 – as the harbinger of further catastrophe.Within minutes of Tsipras giving his “victory” speech, some in his Syriza party were denouncing the bailout accord – the third emergency funding programme for the debt-stricken country since 2010 – as the harbinger of further catastrophe.
“After 17 hours of ‘negotiations’ the leaders of eurozone member states reached an agreement that was humiliating for Greece and the Greek people,” the dissenters, coalesced around the energy minister Panagiotis Lafazanis, declared. “After 17 hours of ‘negotiations’ the leaders of eurozone member states reached an agreement that was humiliating for Greece and the Greek people,” declared the dissenters, coalesced around the energy minister Panagiotis Lafazanis.
Related: Greece and eurozone reach agreement in bailout talksRelated: Greece and eurozone reach agreement in bailout talks
Political tumult beckons. Tsipras returns to Athens with a deal that is so excoriating not even his closest allies on Monday appeared willing to defend it. Political tumult beckons. Tsipras returns to Athens with a deal so excoriating that not even his closest allies on Monday appeared willing to defend it.
“Europe is punishing us … we can’t make this agreement seem better than it is,” snapped the labour minister, Panos Skourletis, predicting that fresh elections would almost certainly have to be held later this year.“Europe is punishing us … we can’t make this agreement seem better than it is,” snapped the labour minister, Panos Skourletis, predicting that fresh elections would almost certainly have to be held later this year.
The fact that the embattled leader will now have to pass controversial reforms in record time will exacerbate the sense of utter capitulation. The final details of a deal, say creditors, can only begin to be discussed if pension cuts, tax increases and liberalisation of the labour market are all enacted into law by Wednesday.The fact that the embattled leader will now have to pass controversial reforms in record time will exacerbate the sense of utter capitulation. The final details of a deal, say creditors, can only begin to be discussed if pension cuts, tax increases and liberalisation of the labour market are all enacted into law by Wednesday.
Tsipras may have “saved” Greece by securing its future in the eurozone and averting financial collapse but to do so he has had to betray everything his coalition of leftists, Marxists and euro-communists stand for. Ideologically, he is now at war with his own party with Syriza irreparably split.Tsipras may have “saved” Greece by securing its future in the eurozone and averting financial collapse but to do so he has had to betray everything his coalition of leftists, Marxists and euro-communists stand for. Ideologically, he is now at war with his own party with Syriza irreparably split.
It will take days for the scale of the concessions to sink in but at least 32 of his 162 MPs have said they will not support “recessionary measures” that will worsen the record levels of poverty and unemployment that Greece has already suffered over five years of applying wrenching austerity to keep bankruptcy at bay. The humbling move of having to hand over €50bn of state assets as collateral for fresh loans will serve to heighten the sense of national defeat.It will take days for the scale of the concessions to sink in but at least 32 of his 162 MPs have said they will not support “recessionary measures” that will worsen the record levels of poverty and unemployment that Greece has already suffered over five years of applying wrenching austerity to keep bankruptcy at bay. The humbling move of having to hand over €50bn of state assets as collateral for fresh loans will serve to heighten the sense of national defeat.
Passage of the reforms through parliament will only happen with the help of the political opposition – ecstatic that Athens has at least remained at the heart of Europe. Stripped of a working majority in the 300-seat house, the Tsipras has hinted that a cabinet reshuffle looms but, ultimately, he may also be forced to agree to a national unity government or government of special purpose. Passage of the reforms through parliament will only happen with the help of the political opposition – ecstatic that Athens has at least remained at the heart of Europe. Stripped of a working majority in the 300-seat house, Tsipras has hinted that a cabinet reshuffle looms but, ultimately, he may also be forced to agree to a national unity government or government of special purpose.
Related: Greek bailout: what happens nextRelated: Greek bailout: what happens next
All is not lost. Tsipras has, and will, make much of the fight he has put up to get to this point. He told Greeks on Monday that the “conservative forces” so bent on booting Greece out of the single currency and asphyxiating it financially had been roundly defeated. All is not lost. Tsipras has and will make much of the fight he has put up to get to this point. He told Greeks on Monday that the “conservative forces” so bent on booting Greece out of the single currency and asphyxiating it financially had been roundly defeated.
Unlike any other crisis leader before him, he said, he had in addition to winning medium-term funding also succeeded in getting the EU and IMF to acknowledge that debt relief was crucial down the line.Unlike any other crisis leader before him, he said, he had in addition to winning medium-term funding also succeeded in getting the EU and IMF to acknowledge that debt relief was crucial down the line.
With popularity ratings at an all-time high, analysts believe that the 41-year-old is still the only politician with the political capital to sell a deal to austerity-weary Greeks.With popularity ratings at an all-time high, analysts believe that the 41-year-old is still the only politician with the political capital to sell a deal to austerity-weary Greeks.
Co-opting the political opposition into backing the agreement will help. Only the neo-Nazi Golden dawn and unyielding orthodox KKE communist party have come out in full force against the agreement – and in recent days the latter has spoken openly of the catastrophe that would be visited on Greece if euro exit occurred. Co-opting the political opposition into backing the agreement will help. Only the neo-Nazi Golden Dawn and unyielding orthodox KKE communist party have come out in full force against the agreement – and in recent days the latter has spoken openly of the catastrophe that would be visited on Greece if a euro exit occurred.
“We will have drama but not tragedy,” said the political analyst Aristides Hatzis. “Tsipras has a unique opportunity as the politically dominant force in this country to sell this deal as a turning point, to re-baptise himself as a leftist moderate and pass long overdue laws that will open up the economy and tackle vested interests. Already today he has spoken about the rich, the oligarchical elite, paying their share.” Aristides Hatzis, a political analyst, said. “We will have drama but not tragedy. Tsipras has a unique opportunity as the politically dominant force in this country to sell this deal as a turning point, to rebaptise himself as a leftist moderate and pass long overdue laws that will open up the economy and tackle vested interests. Already today he has spoken about the rich, the oligarchical elite, paying their share.”
Related: Greece agreement is 'bad but still better than leaving the euro'Related: Greece agreement is 'bad but still better than leaving the euro'
How Tsipras will reincarnate from being a Hugo Chávez-style populist to an open-market reformer will be part of the drama that awaits Greeks. How Greeks themselves will act to such sweeping changes also remains to seen.How Tsipras will reincarnate from being a Hugo Chávez-style populist to an open-market reformer will be part of the drama that awaits Greeks. How Greeks themselves will act to such sweeping changes also remains to seen.
Disgust with political elites so wholeheartedly associated with the bungled policies that have lead to the country’s near economic collapse should not be underestimated. Nor should popular anger at being asked to swallow the bitter pill of yet more biting budget cuts.Disgust with political elites so wholeheartedly associated with the bungled policies that have lead to the country’s near economic collapse should not be underestimated. Nor should popular anger at being asked to swallow the bitter pill of yet more biting budget cuts.
With their resounding rejection of austerity measures in a referendum held barely 10 days ago, Greeks have shown just how willing they are anything to embrace anything that represents the anti-establishment. If voters become disillusioned with Syriza, they may well turn to other solutions. Golden Dawn may well ride high on its searingly anti-austerity rhetoric and it is lying in wait. With their resounding rejection of austerity measures in a referendum held barely 10 days ago, Greeks have shown just how willing they are anything to embrace anything that represents the anti-establishment. If voters become disillusioned with Syriza, they may well turn to other solutions. Golden Dawn may well ride high on its searingly anti-austerity rhetoric, and it is lying in wait.