Greece clears last batch of reforms needed to exit bailout

The Associated Press
ATHENS, Greece - Greek lawmakers approved Thursday the last batch of economic reforms required by creditors, as the country approaches the end of its international bailout.

Lawmakers in the 300-member parliament voted 154-144 to approve the bill, with two deputies not present. The legislation includes a raft of reforms on issues, from pension cuts to health care and tax reforms. During the parliamentary debate ahead of the vote, around 3,000 demonstrators marched through central Athens in protest.

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The bill was the last step Greece's government was required to make ahead of a meeting next week of finance ministers of the 19-nation eurozone, where Greece and its creditors are to reach a final deal on its bailout exit.

Greece is to emerge from its third and final bailout on Aug. 20, after eight years of relying on emergency loans from international creditors.

In return for the funds it received, mostly from other eurozone countries but also from the International Monetary Fund, Greece had to make repeated rounds of deep spending cuts, structural reforms and privatizations through the years. Its economy has been under strict supervision, with creditors carrying out regular reviews.

"Today's parliamentary session is of a historic nature. After eight years we are voting on the last measures of the last review," Prime Minister Alexis Tsipras said in parliament. "We honored our commitments, the credibility of the country has been restored."

The repeated rounds of austerity measures have been met with frequent protests in Greece, whose economy has contracted by about a quarter since its financial crisis began in late 2009.

European Commission Vice President Valdis Dombrovskis, who met with Tsipras in Athens Thursday, said creditors were working on reaching a final deal on the bailout exit at the finance minister's meeting on June 21.

"Two months from now, Greece will complete its program," Dombrovskis said. "It will be a delicate, yet perfectly doable exercise, provided that all parties show commitment and act responsibly."

Later Thursday, Greece's European creditors approved the release of a further 1 billion euros in bailout funds for the payment of arrears.

Once the bailout is over, Greece will have to finance itself by borrowing on international bond markets. The country has long sought some relief on the rescue loans it has to repay to its creditors, which are mainly fellow eurozone states.