Protests have turned violent in front of the Greek parliament building in Athens as lawmakers were set to vote to push through new, contentious economic reforms.
These reforms are required before the country can receive a third bailout worth as much as $96 billion, but many Greeks are opposed to the measures.
For months, Prime Minister Alexis Tsipras and his Syriza party rallied against these reforms. But Tsipras was forced to accept them as the country tottered on the brink of bankruptcy.
Greece’s parliament will have to formally approve the following measures Wednesday:
— Reform the tax code to raise additional revenue for the government. This will include raising sales taxes on restaurant meals and other items to 23% and eliminating tax discounts on popular Greek islands.
— Overhaul the pension system, which would include setting the standard retirement age at 67 to discourage people from retiring early.
— Safeguard the independence of the nation’s statistics agency, the institution responsible for data tracking the nation’s debt and economic growth.
–Implement rules to meet budget targets, which could require additional spending cuts.
It’s expected that an overall majority of lawmakers will vote to accept these measures, though some Syriza members will vote them down.
Even Tsipras said he doesn’t “believe in the measures that were imposed upon [Greece]”, but said he would follow through on them to secure the bailout.
Angry protesters were holding a large rally outside parliament Wednesday evening. Many say they would prefer to exit the eurozone and return to the old drachma currency rather than accept such harsh conditions.
The parliament vote is only the first step before bailout money can flow again.
On July 22, Greece’s parliament will have to approve another round of reforms.
In addition, a handful of other eurozone countries, including Germany and Finland, also need approval from their parliaments.
Once all that is done, formal negotiations can truly begin on a promised $96 billion bailout program.
Eurozone nations, along with the European Central Bank and the International Monetary Fund, have already loaned Greece roughly 233 billion euros ($255 billion) in rescue financing since 2010.
They are unwilling to lend Greece any more money without promises that it will get its financial house in order.
At the end of June, Greece was the first developed country to ever default on a debt payment to the IMF. It defaulted on another IMF debt payment on Monday.
