While both Alex Tsipras and the leaders of the main Greek opposition party have argued for the deal that looks to many like a poisoned chalice, demonstrators outside the Greek parliament have attacked riot police with molotov cocktails and rocks. And inside the debate has also been heated – at one point, ex finance minister Yanis Varoufakis was booed and heckled for his role in the gamesmanship that Greece played – and lost – in a high stakes game. But finally the votes are in, and the Greek parliament has accepted the deal.
Just hours before the key vote Greece’s deputy finance minister Nadia Valavani resigned in protest over the harsh terms of the bailout. Nor is the IMF very happy about the deal.
“The dramatic deterioration in debt sustainability points to the need for deft relief on a scale that would need to go well beyond what has been under consideration to date – and what has been proposed by the ESM,” the IMF note said, referring to the European Stability Mechanism, the bailout fund that would take the lead funding role in Greece’s next bailout.
The IMF released a report Tuesday that suggests Greece needs far more debt relief than European governments have to date been willing to provide. It believes that Greece must get a 30-year grace period on its European debt including new loans and a significant extension of the maturity dates on its debt.
"We have made it clear ... we need a concrete and ambitious solution to the debt problem,” said a senior IMF official, who spoke on condition of anonymity. “I don't think this is a gimmick or kicking the can down the road ... If you were to give them 30 years grace you are allowing them in the meantime to bring down debt by ... getting some growth back."
But the deal is not yet done, as a number of EU governments now have to go to their parliaments to have the deal ratified. This Greek opera may still be waiting for the fat lady