Greece debt crisis: Tsipras facing eurozone deal revolt

By BBC News

Greek MPs are debating tough economic measures they must approve by the end of the day in order for an €86bn eurozone bailout deal to go ahead.

Lawmakers are expected to pass new legislation increasing taxes and raise the retirement age.
PM Alexis Tsipras has said he does not believe in the deal, but has urged MPs to agree to the measures.
The vote is expected to pass, despite a revolt from some hardliners in his left-wing Syriza party.
Pro-European opposition parties have pledged to vote for the measures.

Hardliners in the ruling left-wing Syriza party are likely to vote against, and the junior coalition party has offered only limited support.
Opponents of the deal took to the streets of Athens ahead of the vote, and unions and trade associations representing civil servants, municipal workers and pharmacy owners held strike action.
More than half of the members of Syriza's central committee have signed a statement condemning the bailout agreement, describing it as a coup against their nation by European leaders.
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The possible bailout was agreed in Brussels on Monday by eurozone members, though one of Greece's creditors, the International Monetary Fund (IMF), has suggested in a report that it does not go far enough - and that Greece will need some of its debts to be written off.
Greece's economy has shrunk by 25% in the last five years amid austerity measures designed to curtail its ballooning public sector debt.
In order to receive a third bailout worth €86bn (£61bn; $95bn) over three years, Greek MPs need to approve measures including:

• The ratification of the eurozone summit statement
• VAT changes including a top rate of 23% to take in processed food and restaurants and; a 13% rate to cover fresh food, energy bills, water and hotel stays; and a 6% rate for medicines and books
• The abolition of the VAT discount of 30% for Greek islands
• A corporation tax rise from 26% to 29% for small companies
• A luxury tax rise on big cars, boats and swimming pools
• And end to early retirement by 2022 and a retirement age increase to 67

Monday's announcement of a possible deal was met with anger among many in Greece, who called it a "humiliation".

Vote risk for Syriza government

Media caption How might Greece's political parties vote?

The Greek constitution states that a government must have a majority - 151 seats out of 300.
But if it loses a vote, the government can still function in a minority capacity as long as the opposition does not call a vote of confidence and as long as the numbers don't fall below 121.
The number of anti-bailout MPs is known to be at least 30 within Syriza's 162-seat coalition.
The question is whether there will be more than 41.
If the numbers go below 121, Prime Minister Alexis Tsipras's government will be severely damaged and will likely look to opposition parties to join a national unity government.

Mr Tsipras has said he does not believe in the deal, though he agreed to it.
In a television address on Tuesday, he called the proposals "irrational" but said he was willing to implement them to "avoid disaster for the country" and the collapse of the banks.
As parliamentary committees considered the details of the laws, Deputy Finance Minister and Syriza member Nadia Valavani announced her resignation, saying: "I'm not going to vote for this amendment, and this means I cannot stay in the government."
And tempers flared when former Finance Minister Yanis Varoufakis was heckled with shouts of "You got us here" while addressing one committee.
The jeers came when he said he doubted the deal could work, and compared it to the conditions imposed on Germany in the Treaty of Versailles after World War One.

Banks stay shut

Greece faces an immediate cash crisis. Banks have been shut since 29 June.
Mr Tsipras has warned banks are unlikely to reopen until the bailout deal is ratified, and this could take another month.
The European Commission has formally proposed a short-term €7bn loan for Greece through the EU-wide European Financial Stability Mechanism (EFSM).
Use of the EFSM for eurozone rescues has been opposed by Britain and other countries which are not part of the euro but are European Union members.