Greece news live: Greek parliament passes controversial austerity bill

By Mehreen Khan, and Barney Henderson 15 July 2015

Greek parliament approves bill of tough reforms demanded by the country's creditors in return for a new bail-out, as protests turn violent

• EU tramples over British opposition to Greek rescue plan
• AEP: IMF stuns Europe with call for massive Greek debt relief
• Greek parliament to vote on sweeping reforms
• Commission will press ahead with use of EFSM despite UK opposition
• Osborne: taxpayer money is "red line"

01.02

The rebel's paradox

Many of tonight's 'No' voting Syriza MPs are still proclaiming loyalty to the government and Mr Tsipras.

Chief dissenter and energy minister Panagiotis Lafazanis has said tonight: "we support the bail-out, not the prime minister".

"Rock star" former finance minister Yanis Varoufakis has also thrown his support behind his PM while rejecting the bail-out terms.

The apparent paradox of this position reflects fears among Leftist MPs that Greece is heading towards a national unity or even technocratic government. The fears are well founded. Former socialist PM Papanderou was ousted and replaced by a technocrat after a loss of confidence back in 2011.

For all his troubles, Mr Tsipras remains far more popular in his country than the bail-out terms his people voted to reject in a referendum. He is now likely to consolidate his position with a reshuffle that sees the hard Left elements lose their influence in favour of Syriza moderates.

If the government manages to survive in its current form, the prospect of new elections remains on the horizon. But in a headache for Greece's creditors, should a vote be held as soon as September, it will still be Mr Tsipras who will likely emerge as the winner.

00.54

Greek MPs during the tense debate

Energy minister says he would resign if PM asked

Panagiotis Lafazanis, the Greek energy minister, has said he would quit if Mr Tsipras sought his resignation, after he and party rebels down voted a crucial reforms package approved by parliament to stave off bankruptcy:

If at any point my resignation is sought it would be at the disposal of the (Prime Minister).

We are lawmakers of this government, we support it wholeheartedly. We support Syriza in government and we support the Prime Minister. We don't support the bailout.

He added that he did not believe the situation warranted snap elections.

00.46

What happens next?

Tonight's vote has put Mr Tsipras in a bind but it will be enough to satisfy Greece's paymasters for the time being.

Tomorrow morning, Eurozone finance ministers will hold a phone conference to formally open a new round of talks over a three-year bail-out. They are also likely to approve a €7bn loan to Greece to help it make its debt repayments in July.

The European Central Bank is also likely to welcome developments. Thursday will see the ECB's latest decision on funding for Greek banks. Most analysts expect the liquidity assistance to remain in place after the Yes vote.

The action will then turn to the rest of the parliaments in Europe. On Friday, the German Bundestag will vote on whether or not to approve a new rescue. Finland and Austria's parliament's will do the same. All three legislatures will need to pass a vote by a majority.

However, talks over securing a new €86bn bail-out are likely to last for another four weeks. Greece's future in the euro is not secure yet.

00.26

Can Tsipras still last?

Alexis Tsipras said he would likely step down from office if he did not gather the support of more than 121 of his Syriza MPs. Tonight's vote has left him with the support of 124.

It's still a very narrow margin that could well provoke a vote of confidence in his leadership. Among the most prominent dissenters are his energy minister, labour minister, and speaker of the House.

Watch this space. At they very least, a major reshuffle beckons.

00.13

Colin Freeman reports from Athens:

Greek MPs have voted in favour of new austerity measures that will secure a third Brussels bail-out to stave off the threat of bankruptcy.

After a tense debate that lasted into the small hours of Thursday morning, the 300 member parliament voted by a majority of 229 to 64 against on a raft of tax hikes and pension reforms. There were six abstentions and one MP was missing from the debate.

The move was part of the conditions laid down by Brussels for a third-bail out of around 85 billion euros, and will stop it being thrown out of the Eurozone.

Mr Tsipras said he would likely step down from office if he did not gather the support of more than 121 of his Syriza MPs. Tonight's vote has left him with the support of 124, a margin that may still leave his fate hanging in the balance and could provoke a vote of confidence in his leadership.

Among those who voted against the package of reforms was Mr Tsipras's former finance minister, Yanis Varoufakis, who likened the measures to a "Treaty of Versailles" for Greece.

Greece news live: Greek parliament passes controversial austerity bill - Telegraph