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Greeks face up to bailout reality

Thursday, July 23, 2015 - 01:53

Greek Prime Minister Alexis Tsipras may have contained a rebellion in his left-wing Syriza party to win parliamentary approval for a second package of reforms. But as Ciara Lee reports he's still got a long way to go in order to secure a bailout package.

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Desperate times call for desperate measures - that's the view of Greece's creditors as the country prepares for bailout talks. Hours after the Greek parliament passed a crucial bill to pave the way to fresh negotiations, many in Athens says its time to face reality. (SOUNDBITE) (Greek) MINAS, 75, PENSIONER, SAYING: "If we don't get the money, it will be worse. If we leave euro, it will be much worse. It's time for some people to realise that the drachma is not an option." (SOUNDBITE) (Greek) NO NAME, SAYING: "The most important thing for me is that Greece becomes a 'modern state', to have a proper administration, and move forward. Greece now faces tough reforms, too tough say some. Critics argue that Greece is being asked to impose austerity that no other country in the bloc has ever had to. And Schroders' Azad Zangana says there is still a possibility Greece may have to leave the euro zone. (SOUNDBITE) (English) AZAD ZANGANA, SENIOR EUROPEAN ECONOMIST & STRATEGIST AT SCHRODERS, SAYING: "There are still concerns around the sustainability of its debt, the loans it has been made from international creditors to the Greek government. And also as we've seen over the last year or so there is a real concern that the politics in Greece is simply becoming unmanageable." That's a concern to euro zone peers too. After Greece was pushed to the edge of bankruptcy, Prime Minister Alexis Tsipras was forced to make a U-turn on the bailout terms, creating rebellion within his party. Tsipras also faces the battle of winning back trust from the country's creditors. They're wary of his past actions and say he must now stick to implementing all reforms. There are a couple he still needs to address including early retirement and a lower tax rate for farmers. But progress has been made and if implemented the reforms could turn the bad boy of Europe into a reform poster-child.