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Greek PM describes bailout deal as 'blackmail' but vows to follow through with it

The Greek prime minister has described the bailout deal with European creditors as "blackmail", b...
Newstalk
Newstalk

06.40 14 Jul 2015


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Greek PM describes bailout dea...

Greek PM describes bailout deal as 'blackmail' but vows to follow through with it

Newstalk
Newstalk

06.40 14 Jul 2015


Share this article


The Greek prime minister has described the bailout deal with European creditors as "blackmail", but has vowed to follow through with it.

In his first televised interview since returning from talks in Brussels, Alexis Tsipras, said he does not believe in the deal but is obliged to implement it.

Mr Tsipras is facing a growing backlash from within his own party over the terms of deal, which includes austerity measures he previously opposed.

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Speaking on public television, Mr Tsipras said if he did not agree to the package of reforms demanded by Europe, Greece would have gone bankrupt.

"The hard truth is this one-way street for Greece was imposed on us," he said.

"The policies imposed on us were irrational.

"We faced a tough and punitive position from our partners... but the (agreement) does offer a way out of the crisis."

Despite the open revolt within his own Cabinet and party, Mr Tsipras said he would not step down and would not call an early election.

"I will not run away from my responsibilities," he said.

IMF report

An IMF report says that Greece needs much deeper debt relief than was pledged during the confrontational discussions in Brussels at the weekend.

It comes as Greek parliament has to pass several pieces of legislation on the deal by tomorrow night.

In the next 24 hours or so a reshuffling of the Greek cabinet is expected, as the embattled prime minister fights to persuade his party - which includes a cohort of rebel far-left MPs - to support him on the tentative proposals he agreed to in Brussels which are likely to lead to a third Greek bailout.

In parliament, Mr Tsipras will likely succeed in passing the seven pieces of legislation required by the eurozone to proceed with further bailout talks – he will do this with the help of the opposition as well as his party.

The fact that another IMF report calling for debt a write-down of Greek debt will not help his position however.

Most of the legislation has to be passed by tomorrow night.

Meanwhile the Irish Government has been accused of allowing Greek people to starve and die simply to preserve its own grip on power.

Anti-Austerity Alliance Paul Murphy says that is the price of the European deal with Greece reached in Brussels yesterday.

Deputy Murphy has told the Dáil that Greece has fallen victim to a coup, in which the leaders of the Syriza party have been complicit.

But he says there is a sinister reason why the Irish Government has allowed others to strike such a hard deal:

The Taoiseach Enda Kenny has said the delay caused by a bailout referendum last week has cost Greece dearly.

Mr Kenny admits the agreement, which must be passed by the Greek parliament, is 'very challenging' for Athens.

Last night, Greece missed another €456mn repayment to the International Monetary Fund (IMF).

It brings the amount outstanding to €2bn.

In a statement yesterday, the IMF said: "We have informed our executive board of this development. Greece's arrears to the IMF total SDR 1.6 billion (about €2.0bn) to date."

"The request by the Greek authorities for an extension of the repayment obligation due on June 30th is expected to be discussed by the executive board in the coming weeks."

Arriving in Brussels earlier today, Finance Minister Michael Noonan says Greece has several options, but says the recent referendum has turned out to be 'disastrous' for them.


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