More than 100 MPs from German Chancellor Angela Merkel’s own party are set to rebel against any new bailout deal for Greece – potentially sealing the country’s fate in the Eurozone.
According to German media, the rebellion could kill of any new deal for Greece if the 193 Social Democrat MPs join the rebels – something that seems likely as Vice-Chancellor as Social Democrat leader Sigmar Gabriel has been even more outspoken against Greece than Merkel.
German magazine Der Spiegel said that scepticism is continuing to grow across the political spectrum in Germany, warning that Merkel is facing a “Grexit uprising.”
“If the chancellor agrees to a new Greek programme, she must reckon with many ‘no’ votes by her own people,” the magazine wrote. “Any ‘no’ vote is a vote against Merkel — and the greater the number of dissenters, the greater the political damage to the Chancellor.”
The Times reports that Merkel is also under pressure from public opinion, with a poll for TV station n-tv showing 92 per cent of German voters oppose a third bailout deal. Although Merkel’s conservative grouping has risen in the polls, this is conditional on them rejecting further funding for Greece.
Greek Prime Minister Alexis Tsipras has been given until midnight tonight to submit plans that would justify a third multibillion euro bailout to save their economy from collapse and ensure their future in the euro.
Tsipras has demanded 30 per cent of the country’s debt be written off by creditors, with the French potentially favouring any deal that would keep Greece in the euro. Christian Noyer, the governor of France’s central bank, said: “A deal absolutely must be reached on Sunday because it will be too late after that and the consequences will be grave.”
A joint letter from Greece’s main tourism associations also warned that if banks did not re-open soon, a huge number of people would lose their jobs.
“Unless business activity resumes soon, with a restoration of liquidity, there will be an explosion of unemployment that will be dramatic and will wipe out all the sacrifices made by the Greek people over the past five years,” they said.