Greek PM Tsipras Seeks Party Backing After Abrupt Concessions

ATHENS | By Angeliki Koutantou and Michele Kambas

Greek Prime Minister Alexis Tsipras appealed to his party’s lawmakers on Friday to back a tough reform package after abruptly offering last-minute concessions to try to save the country from financial meltdown.

With creditor institutions due to deliver an initial verdict on Athens’ loan request and reform proposals within hours, euro zone partners appeared to be preparing for a deal at the weekend to keep Greece in the euro zone.

After walking into a party meeting to applause, Tsipras tried to rally his Syriza lawmakers behind the new proposals ahead of a snap vote in parliament expected late on Friday. He urged them to help Greece stay with the euro, but he faced some resistance from leftists stunned by his acceptance of previously spurned austerity measures.

“We are confronted with crucial decisions,” Tspiras told his party caucus, according to a Greek official.

“We got a mandate to bring a better deal than the ultimatum that the Eurogroup gave us, but certainly not a mandate to take Greece out of the euro zone,” he said. “We are all in this together.”

The latest reform package was strikingly similar to the terms Greeks rejected in a referendum just last Sunday, angering members of the Syriza’s hardline Left Platform wing. Five of them signed a letter saying it would be better to return to the drachma, Greece’s pre-euro currency, than to swallow more austerity with no debt write-off.

“The proposals are not compatible with the Syriza program,” Energy Minister Panagiotis Lafazanis, who belongs to the far-left faction, told Reuters.

He declined to say how he would vote in the plenary ballot expected late on Friday night. “We will take it step by step.”

Even with a rebellion from within his own ranks, Tsipras was assured of backing from opposition lawmakers to carry the vote, but his political position would be weakened. The centrist opposition To Potami party and the main center-right opposition New Democracy said they would support him.


Germany, which has contributed more to bailouts than any other country, sounded wary. A finance ministry spokesman ruled out any debt restructuring that would lower its real value.

France, Greece’s strongest supporter in the euro zone, rushed to offer praise. President Francois Hollande called the offer “serious and credible”. Eurogroup head Jeroen Dijsselbloem described it as a “thorough piece of text” but declined to go into specifics.

“Broad support in Greece gives it more credibility, but even then we need to consider carefully whether the proposal is good and if the numbers add up,” he told reporters. “One way or the other, it is a very major decision we need to take.”

The lenders’ backing is crucial for euro zone leaders to support the proposals. Dijsselbloem, European Commission President Jean-Claude Juncker, European Central Bank President Mario Draghi and International Monetary Fund head Christine Lagarde discussed the plan in a teleconference.

The euro gained more than 1 percent against the dollar and European markets rallied on the improved prospects for a last-ditch deal to keep Greece in the currency area. Italian, Spanish and Portuguese bond yields fell, reflecting perception of reduced risk.

U.S. Treasury Secretary Jack Lew said Greece and its creditors appeared to be closer to a deal, calling for an adjustment to Athens’ debt burden to ease its cash flow.

Greece still has to overcome hardening attitudes toward it among euro zone partners.

Some, including a senior member of German Chancellor Angela Merkel’s party, greeted the latest reform proposals with scepticism. Slovakia’s finance minister questioned whether the proposals went far enough.


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