Greece, creditors reach new debt deal

LONDON – A deal between Greece and its European creditors Monday averted financial collapse and a rapid Greek exit from the eurozone, but raised questions about whether the government in Athens can muster the political support it needs to deliver on its promises.

Greek Prime Minister Alexis Tsipras is facing opposition at home to an agreement that obliges him to rush a package of economic reform measures through Parliament by the end of Wednesday, in order to secure an international bailout worth up to $96 billion. The measures include austerity cuts, tax increases and pension reforms that Tsipras had previously denounced.

The deal has roused anger among Greeks who say creditors such as Germany are making humiliating demands and turning their country into a vassal state. In return for a bailout, Athens’ finances would be subject to regular inspection by outside monitors, and even some draft government bills would require lenders’ approval before they could be introduced in Parliament.

Tsipras said the agreement is the best he could get to save Greece’s banks from collapse and to keep his country solvent and a member of the eurozone.

An exit from the euro would have a catastrophic effect on the Greek economy, which is already in depression after five years of deep austerity cuts.

“We made the right decision for our country and our financial system,” Tsipras said in Brussels after 17 hours of negotiations with other eurozone leaders.

Immediately upon his return to Athens on Monday afternoon, Tsipras met with advisers to plan how to get the package of economic reforms through Parliament this week, as dictated by the agreement.

Some of the most vocal opponents are members of Tsipras’ Syriza party, which came to power in January promising to reject the kinds of policies he is now trying to push through. There were reports Monday that the junior party in the coalition government was also demurring from supporting the legislation.

Despite the defections, the reform measures are still considered likely to pass with the help of opposition lawmakers. But if Tsipras has to rely too heavily on their votes, he could be forced to resign as prime minister, form a new “national unity” government with opposition parties or call new elections.