#DoYouRemember? — The third bailout
After marathon negotiations, Greece and its creditors agreed on a controversial package.
Exactly two years ago, the third bailout for Greece was agreed upon. After 17 hours of negotiations, the emergency Eurozone summit thwarted fears of Grexit by agreeing on a €86bn growth package and debt restructuring.
The money was conditional upon implementing the agreed reforms in three days. The Greek Prime Minister Alexis Tsipras said: “The deal is difficult but we averted the pursuit to move state assets abroad,” he continued. “We averted the plan for a financial strangulation and for the collapse of the banking system.”
It was a “tough battle,” he continued. More battles lay ahead of him, as he had to pass a tranche of unpopular austerity measures through parliament.
A week earlier, the Greek people had voted against a bailout package that demanded austerity measures. When the referendum was announced, capital controls were introduced in Greece to avoid a run for the banks.
The head of Eurozone finance ministers, Jeroen Dijsselbloem, outlined two funds established by the agreement. The first, a €50bn Greece-based fund to privatise and/or manage Greek assets. Half of the €50bn would be used to recapitalise Greek banks.
As soon as they landed from Brussels, Alexis Tsipras and his Finance Minister, Euclid Tsakalotos, attended a meeting of SYRIZA’s political secretariat.
On July 14th, he gave an interview to public television. He claimed that the creditors won a “pyrrhic victory” against Greece that was, in fact, a “defeat for Europe.”
“I am fully assuming my responsibilities, for mistakes and for oversights, and for the responsibility of signing a text that I do not believe in, but that I am obliged to implement.”
Meanwhile, protests erupted in the streets and the public sector union launched a 24-hour nationwide strike against the loan agreement.
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