Amidst the uproar triggered by the new deal laid out by the Eurozone, the Greek Parliament has approved the tough measures to enable the € 86 billion Eurozone bailout deal. Two hundred and twenty nine lawmakers voted Yes, sixty four voted No, and six abstained. Half of the rejection votes came from the ruling party Syriza.
An impressively composed Alexis Tsipras said he did not believe in the deal but was willing to implement the “irrational” proposal to avoid the banks from collapsing and disaster for Greece. In a speech just before the vote, the Prime Minister said, “The Greek people are fully conscious and can understand the difference between those who fight an unfair battle and those who just hand in their weapons.” He explained he had to choose between a deal he didn't believe in and chaotic default.
The new deal will impose measures like: Reform the tax code to raise additional revenue for the government, which will include raising sales taxes on restaurant meals and other items to 23% and eliminating tax discounts on popular Greek islands; overhaul the pension system, which will include setting the standard retirement age at 67 to discourage people from retiring early; safeguard the independence of the nation's statistics agency, the institution responsible for data tracking the nation's debt and economic growth; implement rules to meet budget targets, which could require additional spending cuts.
Many people preferred to exit from the Eurozone and return to drachma, than comply with the disturbingly high standards imposed on them. The possible bailout was agreed in Brussels by Eurozone members, though one of Greece's creditors, the International Monetary Fund, 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.
