Home >> Business

Greece debt crisis live: MPs debate bailout after IMF demands debt relief

Greece debt crisis live: MPs debate bailout after IMF demands debt relief - Opposition to the bailout in Germany is growing especially among Angela Merkel's CDU and CSU MPs.

On the other hand, George Osborne has demanded that eurozone countries protect the treasury against any losses if Britain is forced to contribute for crisis-hit Greece. That compromises the assurance made to David Cameron in 2011 that British taxpayers would not be forced to back eurozone bailouts.

Protesters are objecting against the new austerity measures which parliament will vote on tonight. The main public sector union ADEDY is holding a 24-hour strike today, to urge MPs not to back this third bailout.

Last night, German finance minister Wolfgang Schuble said he still believed in his temporary Grexit plan and claimed many in the German government shared his view.

Meanwhile US Treasury Secretary Jacob Lew is coming to Frankfurt for emergency talks with European Central Bank President Mario Draghi. Tomorrow he will meet Schuble in Berlin.

And anti-austerity protests wil be held tonight across Germany to show harmony with the Greeks. The Greek parliamentary speaker, Zoe Konstantopoulou, has asked MPs to stand up and show non-cooperation against the country's lenders.

Greece's immediate future will depend on whether Alexis Tsipras, can manage to motivate enough MPs to support the reforms that even he doesnot believe in. Failure to keep defections below 40 (and the number of mutinous MPs appears to be growing) could generate unforeseen events.

Despite George Osborne's best efforts, it seems that UK taxpayers could help deposit a bridging loan to Greece. The FT's Peter Spiegel informs that the Commission has officially proposed using the European Financial Stabilisation Mechanism - funded by all 28 EU members - to back Greece's immediate funding needs.