In place of the rebels, Tsipras named allies of his own or his junior coalition partners, the right-wing Independent Greeks party, aiming to seal the bailout accord with European partners over the next few weeks before likely new elections.
Former labour minister Panos Skourletis was appointed new productive reconstruction, environment and energy minister, replacing Panagiotis Lafazanis.
The global Monetary Fund, which was involved Greece’s previous two bailouts and will also play a role in the third, has long advocated the country’s debt is too high and that any deal must include debt relief, something the Greek side has also insisted on.
Lawmakers voted 439-119 Friday in favor of the commencement of discussions. There were 40 abstentions. “But it is also clear that this is a short-term government”.
The banks were closed on June 29 to stop people spooked by a possible “Grexit” – Greece exiting the eurozone – from emptying their accounts or moving their money to safehavens overseas. The package included painful hikes in taxes, spending and pension cuts and a cutback in collective bargaining agreements. “The principle… of responsibility and solidarity that has guided us since the beginning of the European debt crisis marks the entire result from Monday”, Merkel told a special session of Parliament.
The German parliament approved the opening of bailout talks on Friday. Chancellor Angela Merkel had warned them Greece would face chaos without a deal. “But I am firmly convinced of one thing: we would be grossly negligent, even irresponsible, if we did not at least try”.
“The cabinet reshuffle was unavoidable for prime minister Tsipras after key radical left-wing ministers refused to support the new deal with the country’s creditors“.
In an interview with the BBC, former Greek Finance Minister Yanis Varoufakis predicted that the economic reforms imposed on his country by creditors are “going to fail”.
1014 – Spain sells 6.4 billion euros ($7 billion) in bonds at its biggest auction in over a year, with benchmark yields falling, helped along by confidence after Greece’s bailout vote. The bill passed 229-64 in the 300-member Greek Parliament, thanks to votes in favour by three pro-European opposition parties. In a letter she sent Tsipras on Monday morning and released by the finance ministry today, Valavani said she believed the tactics of the “dominant circles in Germany” was “the full humiliation of the government and the country”.
The Greek government ordered banks to open on Monday, three weeks after they were shut down to prevent the system collapsing under a flood of withdrawals, as Prime Minister Alexis Tsipras looked to the start of new bailout talks next week. Greeks will still be limited to cash withdrawals of 60 euros per day.