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Greece debt crisis: German MPs to vote on bailout | Greece debt crisis: German MPs to vote on bailout |
(34 minutes later) | |
The German parliament is to vote on whether to allow negotiations on Greece's €86bn (£60bn) bailout deal. | The German parliament is to vote on whether to allow negotiations on Greece's €86bn (£60bn) bailout deal. |
Germany is one of several eurozone states that must give the green light before the rescue deal can go ahead. | Germany is one of several eurozone states that must give the green light before the rescue deal can go ahead. |
Greek MPs voted for the bailout, including hard-hitting austerity measures, on Thursday. However, the government lost its majority. | |
The German vote comes hours after the news that Greek banks, shut nearly three weeks ago, will reopen on Monday. | |
The announcement was made after the European Central Bank (ECB) raised the level of emergency funding available. | The announcement was made after the European Central Bank (ECB) raised the level of emergency funding available. |
However, credit controls limiting cash withdrawals to €60 a day will only be eased gradually, officials say. | However, credit controls limiting cash withdrawals to €60 a day will only be eased gradually, officials say. |
Earlier, eurozone ministers also agreed a €7bn bridging loan from an EU-wide fund to keep finances afloat. | Earlier, eurozone ministers also agreed a €7bn bridging loan from an EU-wide fund to keep finances afloat. |
The moves came after Greek Prime Minister Alexis Tsipras won a parliamentary vote on the bailout proposals in the early hours of Thursday. | The moves came after Greek Prime Minister Alexis Tsipras won a parliamentary vote on the bailout proposals in the early hours of Thursday. |
MPs divided | MPs divided |
German Chancellor Angela Merkel has urged MPs to back the deal, saying she was "absolutely convinced" it was the way forward. | |
But the BBC's Jenny Hill in Berlin says Mrs Merkel can expect a stormy session, with many MPs in her centre-right CDU-CSU alliance saying they will vote against the measure. | But the BBC's Jenny Hill in Berlin says Mrs Merkel can expect a stormy session, with many MPs in her centre-right CDU-CSU alliance saying they will vote against the measure. |
However, coalition partners the SPD and other smaller parties have said they will support it. | However, coalition partners the SPD and other smaller parties have said they will support it. |
The vote is scheduled to begin at 10:00 local time (08:00 GMT). | |
Austria's parliament is also due to vote on the bailout package on Friday. Both the French and Finnish parliaments have already backed the deal. | |
Greece has debts of €320bn and is seeking its third international bailout. Last month it became the first developed country to fail to make a repayment on a loan from the International Monetary Fund (IMF). | |
The bank closures have been one of the most visible signs of the crisis. | |
From Monday, a weekly limit on withdrawals may replace a daily cap, the deputy finance minister suggested. | |
"If someone doesn't want to take €60 on Monday and wants to take it on Tuesday, for instance, they can withdraw €120, or €180 on Wednesday," Deputy Finance Minister Dimitris Mardas told ERT television | |
Bridging loan | |
The announcements from the ECB and the Eurogroup came after Greek MPs passed tough reforms on VAT, taxes, pensions and labour rules as part of the new bailout deal. | |
ECB President Mario Draghi told a news conference that emergency funding - ELA - to Greek banks was being raised by €900m over one week. | ECB President Mario Draghi told a news conference that emergency funding - ELA - to Greek banks was being raised by €900m over one week. |
The €7bn bridging loan means Greece will be able to repay debts to the ECB and IMF on Monday. | The €7bn bridging loan means Greece will be able to repay debts to the ECB and IMF on Monday. |
It was agreed in a conference call on Thursday to tap the EU's EFSM emergency fund and is expected to be confirmed on Friday by all EU member states. | It was agreed in a conference call on Thursday to tap the EU's EFSM emergency fund and is expected to be confirmed on Friday by all EU member states. |
The move had angered some EU members who are not in the single currency, but on Thursday the UK said it had won an agreement to protect its contribution in the EFSM. | The move had angered some EU members who are not in the single currency, but on Thursday the UK said it had won an agreement to protect its contribution in the EFSM. |
What happens next? | What happens next? |
By 22 July, Greece must also commit to a major overhaul of the civil justice system. It has to agree to more privatisation, to review collective bargaining and industrial action, and make market reforms, including relaxing Sunday trading. | By 22 July, Greece must also commit to a major overhaul of the civil justice system. It has to agree to more privatisation, to review collective bargaining and industrial action, and make market reforms, including relaxing Sunday trading. |
The Greek vote on Thursday paved the way for eurozone finance ministers to open detailed talks on the bailout. |