Greek parliament backs PM Tsipras' bailout referendum

The Greek parliament has backed Prime Minister Alexis Tsipras' call for a referendum on the country's bailout deal with international creditors.


The referendum planned for Sunday July 5 was approved by at least 179 deputies out of a total of 300 lawmakers. Verification of the vote count was under way, AFP news agency reported.

Tsipras' leftist Syriza party and its ally voted in favour of the referendum that has angered its creditors who earlier rejected the debt-ridden country’s request for a bailout extension.

The country needs to make a $1.8bn payment to the International Monetary Fund by Tuesday or risk defaulting on its obligations.

And that would spell disaster for its banking system which is currently relying on emergency cash injections from European Central Bank - one of its foreign creditors.

In a speech prior to the vote, Prime Minister Tsipras said he was confident that "the Greek people will say an emphatic no to the ultimatum" by the country's creditors - the International Monetary Fund, European Central Bank and European Commission.

"The day of truth is coming for the creditors, the time when they will see that Greece will not surrender, that Greece is not a game that has ended," he said in an address to parliament laced with references to democracy and national dignity.

"I am certain that the Greek people will rise to the historical circumstances and issue a resounding 'No' to the ultimatum," he said as he wound up the debate before a vote to authorise the referendum.

Negotiating power

He also expressed confidence that "in the aftermath of this proud no, the negotiating power of the country (with the country's creditors) will be strengthened".

The move comes after five months of stalemated negotiations, with Tsipras accusing creditors of trying to strong-arm his country into taking harsh austerity measures he says would hammer an economy already on its knees after five months of creditor-demanded spending cuts and tax hikes..................http://www.aljazeera.com/news/2015/06/greek-parliament-approves-bailout-referendum-plan-150627225459877.html
28/6/15
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Related:

• Greek parliament approves holding referendum on July 5

• Greek referendum decision 'closes door' on further talks

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