Greek Prime Minister Alexis Tsipras today battled to hold his ruling Syriza party together as opposition mounted to a shocking new bailout deal that requires Athens to push through draconian reforms within two days.
With around 30 hardline Syriza lawmakers threatening to oppose the latest tough reforms demanded by Greece's international creditors, Tsipras faced the unenviable task of turning to pro-austerity opposition parties to push the deal through parliament by tomorrow.
In the agreement struck yesterday with the eurozone to prevent Greece crashing out of the euro, the Greek parliament must pass sweeping changes to labour laws, pensions, VAT and taxes.
Only then will the 18 other eurozone leaders start negotiations over what Greece is to get in return: a three-year bailout worth up to 86 billion euros (USD 96 billion), its third rescue programme in five years.
With much of the party up in arms, Tsipras loyalists were hard at work to convince a sceptical party that the tough cuts could be softened through alternative measures.
"I believe the people trust Tsipras and the government to remove these measures in the implementation phase, there can be policies that can cancel them out," said Interior Minister Nikos Voutsis.
But a number of prominent leftists were refusing to budge.
"I was elected on a platform of abolishing the bailout and its application laws," Syriza lawmaker and parliament vice-president Despoina Haralambidou told Vima FM radio.
"The great majority of Syriza organisations oppose this agreement... In terms of labour and pension issues this is worse than the last two bailouts," she added.
Syriza's junior coalition partner, the nationalist Independent Greeks party (ANEL) also said it would not approve the tough measures but would stay in the government.
In Washington, the White House hailed the deal on Greece as "a credible step" on the long path to economic growth and debt sustainability in the hard-up country.
And French President Francois Hollande insisted there was no Greek humiliation in the deal struck in Brussels.
Tsipras has predicted "the great majority of Greek people will support" the deal, which he said includes help to ease Greece's huge burden of debt and revive its crippled banking system.
The last-ditch deal is aimed at keeping Greece's economy afloat amid fears its cash-starved banks were about to finally run dry and trigger its exit from the single currency.
