(MENAFN- The Peninsula) The German and Dutch parliaments approved a third bailout for Greece yesterday after Finance Minister Wolfgang Schaeuble said the country should get "a new start", while in Athens the government agonised over whether to call a snap election.
The Bundestag vote cleared one of the final obstacles to Greece getting funding so that it can make a ‚¬3.2bn debt repayment to the European Central Bank today.
But a sizeable number of conservative lawmakers rebelled against Chancellor Angela Merkel, objecting to pouring yet more billions into Greece.
The Dutch parliament also gave its blessing to the Greek rescue, while the board of the eurozone's bailout fund was holding a teleconference to approve disbursing the first tranche of funds under the new Greek programme.
In Athens, Prime Minister Alexis Tsipras and his inner circle debated whether to take on anti-bailout rebels in his own radical left Syriza party by calling a parliamentary confidence vote or to go straight to early elections.
Popular misgivings about more aid for Athens run deep in Germany, the eurozone country which has already contributed most to Greece's two previous bailouts since 2010. But Tsipras secured the third programme by promising to impose reform and austerity policies that are so onerous that a sizeable number of Syriza lawmakers rejected the deal in parliament last Friday.
Schaeuble, who took a tough negotiating stand with Greece as it came close to financial collapse, admitted he wasn't sure whether the Tsipras government would stick to its promises.
Nevertheless, he urged the Bundestag before the vote to back the new package which offers bailout loans worth ‚¬86bn. "Of course, after the experience of the last years and months there is no guarantee that everything will work and it is permissible to have doubts," he said.
"But in view of the fact that the Greek parliament has already passed a large part of the measures it would be irresponsible to not use the opportunity for a new start in Greece," he said, making the case for the government.
The Bundestag, whose backing is essential for the release of bailout funds, approved the plan by 454 votes to 113, with 18 abstentions. Altogether 63 of the 311 conservative members voted against and a further three abstained. Support from parties including the Social Democrats, Merkel's junior coalition partner, and the opposition Greens ensured the approval. However, the rebellion delivered a blow to Merkel's authority.
The Netherlands endorsed a third bailout for Greece on Wednesday as both the cabinet and parliament approved the step after a bruising debate in which Prime Minister Mark Rutte's credibility was challenged.
Although a majority in parliament supported the bailout, it is unpopular with Dutch taxpayers, especially Rutte's own conservative base, just as in Germany.
Rutte was left explaining why he had reversed course on a pledge he gave during his successful 2012 election campaign that he would give "not one more cent for Greece."
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