Euro lenders to pass bailout judgment as Greece backs reforms

PARLIAMENT DIVIDED

With Greece's banks shut and completely dependent on a credit lifeline from the European Central Bank, the measures were seen as a last chance to avert financial collapse.

Far-right Golden Dawn party lawmakers hold placards that read 'NO' in Greek as party spokesman Christos Pappas speaks during a parliamentary session in Athens, Greece, July 11, 2015. Prime Minister Alexis Tsipras defended the painful bailout proposals his leftwing government presented to parliament on Friday, saying they were difficult measures but would help keep Greece in the euro zone. [Photo/Agencies]

The European Commission, ECB and IMF told euro zone governments after a review of Tsipras's proposals that they was sufficient basis to start negotiating conditional loans from the currency bloc's ESM bailout fund.

But in an ominous sign for the stability of the Greek government, 10 members on the ruling benches abstained or voted against the measures and another seven were absent, leaving Tsipras short of the 151 seats needed for a majority of his own.

Prominent leftwingers in his Syriza party signalled before the vote that they could not support the mix of tax hikes and spending cuts proposed by Tsipras, following the rejection of similar austerity measures by voters in Sunday's referendum.

Energy Minister Panagiotis Lafazanis, Deputy Labour Minister Dimitris Stratoulis as well as the speaker of parliament, Zoe Constantopoulou, all called "Present", in effect abstaining from the vote and withholding their support from the government.

"The government is being totally blackmailed," Constantopoulou said.

Following the vote, where many leftists in his own party were stunned by his acceptance of previously spurned austerity measures, Tsipras said he would now focus on securing a deal.

"The parliament today gave the government a strong mandate to complete the negotiations and reach an economically viable and socially fair agreement with its partners," he said.

"The priority now is to have a positive outcome to the negotiations. Everything else in its own time."