Will the Greek Third Bailout Deal Save Greece?

• 08.15.2015, 20:48
•  Europe,  World

Once again, after a night-long negotiations, on July 14 Greece's parliament approved the agreement with the international lenders, according to which the country should receive 85 billion euros in exchange for the necessary reforms.

According to The Greek Reporter, the majority of Greek lawmakers voted in favor of ratifying the agreement on financial assistance from the European Stability Mechanism, which means that the EU finance ministers will discuss the situation in the 2nd half of August eliminating the last obstacles on the way of implementing the 3rd bailout.

The agreement consists of two articles. The first part includes 40 reforms, the implementation of which is a condition for extending financial assistance program. The second article gives additional powers to the Minister of Finance and the Greek financial stability fund management. From now on, they can sign agreements and other documents.

Furthermore, Parliament ratified the aid agreement for the next 3 years between the European Stability Mechanism, the Cabinet of Ministers of Greece, Hellenic Financial Stability Fund and the Central Bank of Greece financial.

The European Commission announced this morning that the alleged program provides financial support and sustainable reforms in Greece.

The Greek government hopes that the program can help in adopting a number of opportunities that are necessary for repaying the debt of the European Central Bank.

"I do not regret that I have decided to compromise," the Prime Minister Tsipras said after the voting, To Vima newspaper reports. "We decided to live and survive, not commit suicide."

But as always, there was a split in the parliament. Greece's main "New Democracy" party, "Nea democracy," said that it wouldn’t support the Prime Minister Alexis Tsipras in confidence vote that could take place after August 20.

However, the Greek problem would not be so difficult to solve, if it was only the opposition party to stand against Tsipras and his decisions, but as long as the split is among the ruling party, and the Prime Minister has some serious opponents within his own Syriza party, it could be very difficult to implement fully and properly the long-discussed and much argued reforms.