Tsipras in the Hellenic Parliament, July 11, 2015. Demotix/Wassilis AswestopolousThe outline of a deal has been reached after a marathon 22-hour session between Greece and the European Union. To call it a negotiation would be deceptive; it was Alexis Tsipras subjected to a browbeating until he acceded to even more stringent conditions than those that were previously offered to him in June. Such was the coin in which his appeal to demokratia was repaid.
- The Greek government will have 48 hours to draft a comprehensive set of reform proposals, dictated from Brussels and including tax increases , pension reform, the works; submit them to Parliament and have them approved. This will re-establish “trust” according to Eurogroup Chairman Jeroen Djisselbloem, though obviously not the trust of the Greek people in European institutions. That is not a concern, obviously;
- At that point, the European Commission will go back to the national parliaments with a recommendation to vote in favor of a new bail-out for the Hellenic Republic, including bridge financing from the European Stability Mechanism. The ECB may also extend the ELA coverage for Greek banks, though not before the reform bill has been enacted;
