Global financial markets are heaving a sigh of relief

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Greece final

Sticking to his promise Greek Prime Minister Alexis Tsipras managed to overcome parliamentary resistance in the early hours of Thursday by 229 votes to 64 by soliciting the support of opposition MPs. Even though his parliamentary speaker Zoe Constantopoulou called the reform measures “social genocide, his left-wing Syriza-led government is expected to survive, despite losing its majority after 38 Syriza MPs rejected the reforms. It paves the way for eurozone finance ministers to open detailed talks on the bailout, worth up to Euro 86bn. On Thursday they agreed “in principle” to start negotiations. Greece needs to repay Euro 4.2bn to the ECB on Monday, as well as making up all its missed payments to the IMF. In other words it needs to spend the Euro 7bn almost as soon as it gets it. On Friday, that is today, EU member states are expected to back the Eurozone decision on €7bn bridge loan to clear Greece’s immediate debts. German parliament is also expected on Friday to back negotiations on the €86bn bailout deal for Greece. This will be followed by Greek parliament approving further reforms by July 22. Lengthy eurozone talks will then be initiated on bailout through European Stability Mechanism (ESM).

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