From second left, European Council President Donald Tusk, European Commission President Jean-Claude Juncker and Dutch Finance Minister Jeroen Dijsselbloem speak with each other during a media conference after a meeting of eurozone heads of state at the EU
Last updated on: July 13, 2015 6:24 AM
Greece and its European partners have reached a third bailout deal after a marathon summit session.
European Union President Donald Tusk said Monday from Brussels that a unanimous agreement had been reached after 17 hours of talks.
Greece agreed to a range of tough reforms in order to receive the proposed nearly $100 billion loan it so sorely needs.
Earlier, the French news agency quoted an anonymous source as saying a “compromise” agreement had been hashed out by Greek Prime Minister Alexis Tsipras with German Chancellor Angela Merkel, French President Francois Hollande and Tusk.
Earlier reports said before a deal could be sealed, an agreement had to be reached on the future involvement of the International Monetary Fund in Greece’s bailout program, and a proposal that Greece must set aside $56 billion worth of assets for eventual privatization.
As part of the pact, Greece has dropped resistance to a full role for the International Monetary Fund in the proposed multi-billion dollar bailout.
Greek Prime Minister Alexis Tsipras speaks with the media after a meeting of eurozone heads of state at the EU Council building in Brussels, July 13, 2015.
Prime Minister Tsipras must now convince the Greek parliament to approve the agreement by Wednesday, including reforms to tax and pension plans that will cut deep into Greek society. Once parliament approves the pact, Tsipras must convince his 18 European partners to release bridging funds in the interim to avert a state bankruptcy.
Tusk said Monday the new pact has “strict conditions,” but it also brings Greece “back on track with its European partners.” He said the new deal “brings back trust among European partners.”
Merkel said “tough conditions have been put in place” with the agreement, but its “advantages outweighed its disadvantages.”
The German leader said “capacity building” for the Greek government was also needed, adding it was “important to strengthen the [Greek] government through modernization of its administration.”