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Greece crisis: Eurogroup agrees to third bailout

August 14, 2015 7:21 pm

Eurozone finance ministers have agreed on a new bailout deal for Greece after Athens backed the plan.

European Commission President Jean-Claude Juncker said the deal sent a message “loud and clear” – Greece will stay in the eurozone.

The agreement demands tax rises and more tough spending cuts in return for Greece’s third bailout in five years.

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The deal means new loans of up to €86bn will be made available over the next three years.

But it comes at a heavy political price for Greek Prime Minister Alexis Tsipras, who has faced a rebellion in his left-wing Syriza party.

More than 40 Syriza MPs voted against him when parliament decided on the bailout agreement on Friday, after all-night talks.

Reports in Greece suggest he will seek a vote of confidence in parliament next week, bringing the prospect of snap elections closer.

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