But last night he managed to convince his party to vote 'yes' to the terms to prevent Greece crashing out the euro

Much of the anger is directed at Prime Minister Alexis Tsipras, who struck the 'bad deal' with eurozone leaders

Last night demonstrators threw petrol bombs at riot police after surrounding the Athens parliament building

Citizens are furious that the country has signed up to draconian terms that


Greece is bracing itself for another night of chaos and rioting as thousands of protesters take the streets in anger at the draconian bailout deal the country's politicians dramatically agreed to at a make or break parliamentary vote yesterday evening.

Demonstrators threw petrol bombs at riot police after surrounding the Athens parliament ahead of the final deadline for the country's €86 billion bailout deal yesterday evening.

Only hours later the politicians agreed to the humiliating terms, prompting further violent clashes that forced riot officers to use tear gas to disperse the dozens of hooded anti-austerity demonstrators who set the Greek capital's Syntagma Square ablaze.

Similar scenes are expected this evening as anger continues to grow over the bailout agreement, which demands harsh austerity measures be put in place and dramatic reforms to the Greek economy swiftly enacted despite huge opposition among the Greek people.

Much of the anger is directed at Greek Prime Minister Alexis Tsipras, who backed down to eurozone leaders' demands following all night talks in Brussels on Monday that were seen as a final opportunity to prevent Greece crashing out of the euro.

It later emerged that the deal he eventually struck was considerably tougher on the Greek people than a previous offer he'd urged them to reject at a historic referendum the previous week.

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Greece has dramatically voted 'yes' to humiliating bailout terms which will see the country stay in the euro. It followed violent clashes in the capital which saw riot police run through fire after petrol bombs were thrown at them by hooded anti-austerity protesters

Terror: Greece is bracing itself for another night of chaos and rioting as thousands of protesters take the streets in anger at the draconian bailout deal the country's politicians dramatically agreed to at a make or break parliamentary vote yesterday evening

Dozens of hooded anti-austerity demonstrators and riot police clashed on the streets of Athens last night, with petrol bombs being thrown

Hundreds of armour-clad officers also used pepper spray to fight back youths in the 12,000-strong crowd who were hurling Molotov cocktails and rocks at them

Violent protesters hurled petrol bombs at riot police after surrounding the Greek parliament ahead of a final deadline for the country's €86 billion bailout deal

Ultimately the bailout terms were agreed after 151 MPs backed the 'yes' vote. But it wasn't all good news for Greek Prime Minister Alexis Tsipras as many of the 'nos' were members of his own party

Greece's parliament had been set a deadline of midnight local time (10pm BST) to pass a raft of measures including billions in cuts, VAT rises and pension reforms to secure the three-year bailout. However, that passed with ministers still locked in a heated debate (pictured)

Greek Prime Minister Alexis Tsipras made a final appeal to parliament for support of the tough package of bailout measures imposed by European partners this week, telling lawmakers there was no alternative, even though he disagreed with the measures

Greece's parliament had been set a deadline of midnight local time (10pm BST) to pass a raft of measures including billions in cuts, VAT rises and pension reforms to secure the three-year bailout.

However, that deadline passed, with ministers still locked in a heated debate about whether or not to adopt the reforms until 2am local time (12am BST).

Ultimately the bailout terms were agreed after 229 of the country's 300 MPs backed the 'yes' vote. But it wasn't all good news for Prime Minister Alexis Tsipras as many of the 64 'nos' were members of his own party. In what was a bruising night for the country's premier, 32 of the 149 members of the radical left-wing Syriza rejected the measures.

A government official has insisted that Tsipras will not resign despite the hit, although he had said he would step down if he did not gather the support of more than 121 of his Syriza MPs. He ended up with the backing of 124.

Former finance minister Yanis Varoufakis and house speaker Zoe Konstantopoulou were among the big names to vote 'no' to the reforms.

Varoufakis, who quit his post last week, had earlier said the deal was a ‘new Versailles Treaty haunting Europe’, while Konstantopoulou called it a coup that could cause 'social genocide'.

On the eve of the deadline, it had looked increasingly likely that the parliament would approve the measures, in large part thanks to pro-European opposition parties.

Armour-clad officers were pictured running away from flames as Molotov cocktails were hurled in their direction on the streets of Athens

A protester stands with a petrol bomb during the anti-austerity protest in Syntagma square in central Athens on the eve of the bailout deadline

Greek Finance Minister Euclid Tsakalotos is pictured with his head in his hands during a parliamentary session prior to the bailout deadline

Youths, some carrying clubs and wearing balaclavas, had mingled with ordinary protesters when crowds gathered as MPs met last night to vote on austerity measures required for the latest European bailout. Others were pictured throwing Molotov cocktails

A youth in an oxygen mask hurls a petrol bomb as violence breaks out in the Greek capital on the eve of the parliament debate on the bailout

But in a sign of growing dissent among the Greek people, hundreds of armour-clad officers were forced to use pepper spray to fight back youths in a 12,000-strong crowd who were hurling Molotov cocktails and rocks at them. The youths had mingled with ordinary protesters when crowds gathered as MPs met last night to vote on austerity measures required for the latest European bailout.

Many of the mask-wearing protesters carried wooden bats and pieces of smashed paving stones, in the worst clashes seen since Tsipras' left-wing government was formed six months ago. Police said about 50 protesters had been detained outside the parliament building.

Inside, Tsipras made a final appeal to parliament for support of the tough package of bailout measures imposed by European partners this week, telling lawmakers there was no alternative, even though he disagreed with the measures.

'We don't believe in it, but we are forced to adopt it,' Tsipras told deputies before a vote on the measures, which had to be approved by parliament for European partners to agree to open talks on a new multibillion euro bailout.

He said he would not shirk his responsibilities and would push forward with political and social reforms and the fight against corruption.

Prime Minister Alexis Tsipras has angered many in his anti-austerity party and left-wing supporters by throwing his weight behind the bills, which he and eurozone counterparts agreed to on Monday in order to unlock a new rescue to debt-laden Greece worth up to €86 billion

Surrounded by flames, riot police stand their ground as petrol bombs are thrown from protesters unhappy about the planned austerity cuts

Protesters march in front of the Greek parliament holding banners and flags. Around 50 anti-austerity demonstrators were arrested by police

His face covered, a violent demonstrator holds a Molotov cocktail as he prowls the streets of Athens during violent clashes yesterday evening

Wearing motorcycle helmets and carrying protest flags, dozens of demonstrators are pictured standing in front of the Greek parliament

Tsipras has angered many in his anti-austerity party and left-wing supporters by throwing his weight behind the bills, which he and eurozone counterparts agreed to on Monday in order to unlock a new rescue to debt-laden Greece.

More than half of Tsipras's Syriza party members slammed the deal, branding it 'humiliating' and 'destructive', while trade unions described the package as ‘economic murder’ and called for thousands to take to the streets.

Mr Varoufakis said the deal was a ‘new Versailles Treaty haunting Europe’.

The 1919 treaty, which set out Germany’s punishment after the First World War, included the payment of crippling reparations that some believe created the economic climate for the rise of the Nazis.

Mr Varoufakis, a member of Tsipras’s left-wing Syriza party, wrote on his blog that the comparison of the bailout deal to the Versailles Treaty was ‘all too germane’.

He also said in a radio interview earlier this week that the austerity package was a ‘form of post-modern occupation’ that would boost the far-right Golden Dawn party.

It followed furious scenes in the Greek parliament yesterday as politicians ripped up papers outlining the terms of the country's €86 billion bailout deal and threw them at Tsipras.

The violence erupted on the sidelines of a demonstration gathering 12,000 people in front of the parliament building opposed to the passage of the reforms

Riot police detain an alleged anti-austerity protester during clashes in Greece. The country's prime minister is fighting to keep his government intact in the face of outrage over an austerity bailout deal

An anti-austerity protester was pictured throwing a bottle at riot police as violence erupted on the streets of Athens yesterday evening

The harsh austerity measures Greece would have to put in place to release the bailout fund have been widely condemned, with even the International Monetary Fund branding them unfair

Police are pictured dodging a petrol bomb thrown at them by demonstrators. Armour-clad officers responded with tear gas against dozens of hooded anti-austerity protesters who set ablaze parts of Syntagma square in central Athens

Police said about 50 protesters had been detained following clashes ahead of the crucial debate by the Greek parliament last night

Firefighters were called after a television station van was set alight during the clashes. Smoke could be seen pouring into the air

Politicians had gathered in Athens yesterday afternoon to debate the draconian reforms Tsipras agreed to implement during crunch overnight talks with eurozone leaders earlier this week.

The harsh austerity measures Greece would have to put in place to release the bailout fund have been widely condemned, with even the International Monetary Fund branding them unfair.

Earlier Tsipras revealed that even he does not believe in the tough bailout deal offered by eurozone leaders but said he only agreed to implement it in order to save the near-insolvent country, adding that he has no intention of resigning over the matter.

Defending the terms, Tsipras said the 'bad deal' was the best available under the circumstances.

He said: 'I assume responsibility for all mistakes I may have made, I assume responsibility for a text I do not believe in, but which I signed to avoid disaster for the country, the collapse of the banks.'

Tsipras also predicted that 'the great majority of Greek people' will support the deal, but admits he 'cannot say with certainty' that it will be enough to stop Greece exiting the eurozone - a so-called 'Grexit' - until the final bailout agreement is signed.

The outcome of today's vote had been in doubt after the IMF issued its stark warning that Greece's creditors will have to go 'far beyond' existing estimates for debt relief to stabilise the country's finances.

A riot policeman tries to avoid a petrol bomb thrown by anti-austerity protesters in Syntagma square in central Athens last night

Frustration: There were furious scenes in the Greek parliament yesterday as politicians ripped up papers outlining the terms of the country's €86 billion bailout deal and threw them at Prime Minister Alexis Tsipras

Anger: Politicians gathered in Athens yesterday afternoon to debate the draconian reforms Tsipras agreed to implement during crunch overnight talks with eurozone leaders earlier this week

Riot police stand in the face of flames from exploded petrol bombs thrown by a group of anti-establishment demonstrators in front of parliament

As a midnight deadline loomed for Greek MPs to vote on whether to accept the controversial plans, it had looked increasingly likely that Tsipras' own hard left Syriza party would reject them en masse, after more than half of the party's members slammed the deal

Earlier Tsipras revealed that even he does not believe in the tough bailout deal offered by eurozone leaders but said he only agreed to implement it in order to save the near-insolvent country, adding that he has no intention of resigning over the matter

A protester burned a Greek flag as demonstrators took to the streets to make their feelings known about the country's bailout agreement

Earlier, demonstrators had displayed the Greek flag in front of parliament in a peaceful protest before things turned violent

The deal has split the ruling radical Syriza party as it includes changes to labour laws, pensions, VAT and other taxes that were rejected by voters in a July 5 referendum.

Tsipras' hard-pressed government suffered its first resignations yesterday afternoon, with a junior finance minister and a senior economy ministry official walking out in protest.

'I'm not going to vote for this amendment and this means I cannot stay in the government,' said junior finance minister Nadia Valavani.

The parliament in Athens had to approve the deal before the 18 other eurozone leaders could start negotiations over what Greece is to get in return: a three-year bailout worth up to €86 billion, its third rescue programme in five years.

Yesterday afternoon it emerged that more than half of Syriza's central committee had signed a statement slamming the agreement Greece reached with its European creditors earlier this week, describing it as a coup against their nation by European leaders.

The statement, signed by 109 of the committee's 201 members, says the agreement was 'the result of threats of immediate financial strangulation' and is a new bailout with 'humiliating terms of supervision, destructive for our country and its people.'

Scuffles: Elderly Greeks push and shove for priority tickets to be allowed to withdraw up to €120 from their pensions this morning

A Greek pensioners is given a priority ticket allowing to her remove up to €120 that will have to last her for the next seven days

Despair: Pensioners wait for the opening of the National Bank of Greece in central Athens earlier this morning

Pensioners are given priority tickets by a National Bank branch manager as they wait to receive part of their pensions in Athens

Huge queues are seen outside banks in central Athens this morning as restrictions are still in place limiting ATM withdrawals to €60 a day

A man makes his way past Greek national flags and European Union flags on display in central Athens earlier this morning

Under the plan, eurozone governments will contribute between €40 and €50 billion, the IMF will contribute another chunk and the rest will come from selling off state assets and from financial markets, a European official said.

Tsipras has admitted he 'cannot say with certainty' that it will be enough to prevent a so-called 'Grexit' until the final bailout agreement is signed.

An IMF official said the fund would only participate in a third bailout if EU creditors produce a clear plan. The current deal 'is by no means a comprehensive, detailed agreement,' the official said.

Its analysis pointed to Greek government debt reaching a peak of close to 200 per cent of the country's economic output over the next two years, which it called 'highly unsustainable'.

'Greece's debt can now only be made sustainable through debt relief measures that go far beyond what Europe has been willing to consider so far,' it added.

Political analysts questioned why the strongly-worded report appeared not to have been taken into account in the agreement.

Greek Finance Minister Euclid Tsakalotos delivers his speech as he attends a parliamentary session in Athens ahead of the bailout deadline

Mr Tsakalotos appeared nervous as he sat down after his speech. The Greek parliament gathered yesterday to discuss the terms of the bailout

The Greek parliament gathered last night to debate on reforms that are key to a preliminary agreement with creditors to keep Greece afloat

A government official has insisted that Tsipras (pictured centre in parliament this afternoon) will not resign despite taking a hit, although he had said he would step down if he did not gather the support of more than 121 of his Syriza MPs. He ended up with the support of 124

Tsipras' hard-pressed government suffered its first resignations yesterday afternoon, with a junior finance minister Nadia Valavani (left) and a senior economy ministry official walking out in protest. Pictured right is Greek Finance Minister Euclid Tsakalotos

Calm: Alexis Tsipras smiles during a Syriza meeting yesterday afternoon. Greek MPs were debating ahead of a vote on austerity measures aimed at saving their economy - which financial analysts doubt will even work

Unpopular: Greece's PM Alexis Tsipras was pictured arriving for a meeting with lawmakers of the Syriza governing party yesterday

The revelations put greater strain on Tsipras, who has been forced to turn to pro-European opposition parties to get the reform measures through parliament after a rebellion by some 30 rebel lawmakers in his own party.

The embattled premier said he took 'full responsibility' for signing an accord he did 'not believe in.' He said he agreed to it 'to avoid disaster' as the country teetered on the brink of economic collapse.

'A prime minister must fight, speak the truth, take decisions and not run away,' Tsipras said in an interview on Greek public television, when asked whether he would resign if the reforms failed to pass or he lost his parliamentary majority.

Finance Minister Euclid Tsakalotos told a parliamentary debate: 'It's a difficult deal, for which only time will show if it is economically viable.'

Quit: Yesterday morning Greece's Alternate Finance Minister Nadia Valavani resigned from government in protest over the austerity measures the country has been asked to implement in exchange for a bailout

No choice: Greek Prime Minister Alexis Tsipras (right) has revealed he does not believe in the tough bailout deal offered by Eurozone leaders but agreed to implement it to save the near-insolvent country from 'disaster'. Pictured left is Greek Finance Minister Euclid Tsakalotos

Greece's former finance minister Yanis Varoufakis attended yesterday's meeting amid revelations that more than half of Syriza's central committee had signed a statement slamming the deal Greece agreed to

Former Greek Finance Minister Yanis Varoufakis arrived at the parliamentary session in Athens yesterday with a backpack on his shoulder

Draconian: Greek people have taken to the streets in protest at the terms of the harsh €86 billion bailout agreement, which even the International Monetary Fund has condemned as 'unsustainable'

Fury: Many Greeks are angry at the harsh bailout terms and yesterday took to the streets of Athens in protest before things turned violent

No: In a scathing attack, the IMF said Greece will never be able to pay back the borrowed billions under the current loan agreement and creditors will have to accept they will never get all the money back

Syriza's hardline leftists, led by Energy Minister Panagiotis Lafazanis, were reported by Greek media as braced to vote against the measures while calling for a return to the drachma.

Polls published late Tuesday by Kapa Research found 72 per cent of Greeks surveyed thought the deal was necessary if tough, but many nevertheless saw it as a humiliating climbdown for a country still reeling from years of painful austerity.

Small anti-austerity protests were held in Athens and Thessaloniki, with police in riot gear closing off roads around parliament ahead of a large-scale demonstration that had been expected late Wednesday. A strike by civil servants against the deal was disrupting travel.

Despite the turmoil, 68 percent of people said that if the political fallout from the vote should result in a new coalition, it should be led by Tsipras.

Under the deal, Greek assets for privatisation will be parked in a special fund worth up to 50 billion euros, with some 25 billion euros of the money earmarked to recapitalise Greece's banks.

Taking a stand: Civil servants began a 24-hour strike in Greece yesterday, as municipal workers and some pharmacists also promised large-scale strikes, in protest against the reform measures

Defiant: Anti-austerity demonstrators marched along a street during a protest in central Athens yesterday morning ahead of the bailout talks

Not working: Public servants protest during a 24-hour nationwide strike in Athens yesterday. It happened ahead of crunch bailout discussions

Outrage: Public servants protest during a 24-hour nationwide strike in Athens. The European Central Bank has been keeping Greek banks afloat with emergency liquidity, but it could be forced to cut off that aid if Greece misses a huge debt repayment due on Monday

Tsipras said Greeks' savings were safe, but the reopening of the banks - which have been closed since the end of last month - depended on the finalising of the deal, which could take a month. The finance ministry said they would remain closed until at least Thursday.

The European Central Bank has been keeping Greek banks afloat with emergency liquidity, but it could be forced to cut off that aid if Greece misses a huge debt repayment due on Monday.

European governments are meanwhile divided over options to help Greece meet its short-term cash needs while it waits for the eurozone bailout deal to be finalised, which will likely to take at least four weeks.

The European Commission on Wednesday formally backed a controversial proposal to use an EU-wide crisis fund to cover Greece's short-term cash needs, officials said, setting up a clash with Britain and Germany.

Tough gig: The news came as Greece geared up for the parliamentary vote on reforms. Greek Prime Minister Alexis Tsipras (right) and new Finance Minister Euclid Tsakalotos (left) tried to convince their Syriza colleagues to unite behind them and agree to tough austerity measures

Challenge: Tsipras (pictured arriving at his office in Athens yesterday) must convince Syriza colleagues to unite behind him and agree that tough austerity measures are the only way to stop Greece crashing out of the euro

Difficult: Banks have been shut in Greece since June 29 and capital controls have been imposed restricting ATM cash withdrawals to €60 per day, and to €120 per week for pensioners and the unemployed without bank cards. Pictured, elderly Greeks queue up outside a bank in Athens

In a sign of the ongoing concern about the global fallout of the Greek crisis, US Treasury Secretary Jacob Lew will travel to Germany and France on Wednesday and Thursday for talks with top officials.

Now that Greece has passed the agreement, Europe's next step is to push the deal through several national parliaments, many in countries that are loath to afford Athens more help.

Yesterday the European Commission said there are 'serious concerns' about the sustainability of Greece's debt load amid a worsening in its economy.

The Commission said in a report that its main forecasts are for debt to reach 165 per cent of GDP in 2020, 150 per cent in 2022 and 111 per cent in 2030.

In an 'adverse' scenario, in which the economy does worse than expected, the debt load would hit a massive 187 per cent, 176 per cent and 142 per cent, respectively.

Angry: Greeks took to the streets yesterday in protest at the terms of the harsh €86 billion bailout deal agreed to by their prime minister

Protest: As Greece geared up for the parliamentary vote on draconian reforms, the outcome of the crucial vote had been far from clear

An anti-austerity banner attacking Tsipras' deal was seen hanging in the northern Greek port city of Thessaloniki yesterday

The left-wing government of Prime Minister Alexis Tsipras took office in January.

The Commission says that since the end of last year, there was a 'very significant weakening of commitment to reforms and backtracking on previous reforms' which quickly led to a 'significant deterioration of debt sustainability.'

The Commission has cut its growth estimates and expects up to a 4 per cent contraction in Greece's economy this year, compared with a 0.5 percent rise predicted early this year.

The German government is arguing that one possible way to help Greece meet its financial obligations in coming days, before a full bailout program is established, is for the country to issue IOUs for domestic needs.

Finance Ministry spokesman Martin Jaeger said Wednesday that 'we have included this element in the discussion' among eurozone nations on how to keep Greece afloat while talks proceed on the details of a full bailout deal. The talks are expected to last weeks.

Under pressure: Tsipras (pictured arriving at his office in Maximos Mansion, Athens yesterday morning) revealed that even he does not believe in the tough bailout deal offered by eurozone leaders

Pensioners wait outside a National Bank of Greece branch to receive their pension in Athens early yesterday morning

Pensioners were pictured waiting outside a National Bank branch to receive part of their pension in Athens yesterday morning

Banks have been shut in Greece since June 29 and capital controls have been imposed restricting ATM cash withdrawals to €60 per day

Jaeger says that IOUs are just one of 'various conceivable approaches.'

Greece needs short-term financing among other things to repay a loan to the European Central Bank due next week and to clear arrears with the International Monetary Fund.

The loan would be made pending the start of a full bailout program agreed on between the 19 eurozone leaders on Monday.

Since Greece needs to meet debt payments as soon as next week, eurozone nations have been looking for a way to give it a first, quick loan. They are considering tapping a fund, the EFSM, which is backed by all 28 countries in the EU. The problem is that non-euro nation Britain does not want to help pay for Greece, which it considers a eurozone issue

The embattled premier said he took 'full responsibility' for signing an accord he did 'not believe in, but which I signed to avoid disaster for the country' as it teetered on the brink of economic collapse.

Q&A: WHAT HAPPENS NOW THAT GREECE HAS AGREED TO THE BAILOUT? Why did the negotiation take so long, and who won? Greek Prime Minister Alexis Tsipras has repeatedly pushed the eurozone to the brink of a complete rupture in a bid to secure the best possible deal for his country. Having been elected on an anti-austerity platform, Mr Tsipras went as far as holding a referendum to reject one supposedly 'final' offer from the currency group and other creditors relating to the final tranche of a previous bailout. But his tactics may have backfired, as with the Greek financial system perhaps just hours from collapse, the premier has been forced to accept a package that many regard as even harsher in return for a fresh loan. So is Grexit over? Not by a long chalk. The Greek parliament could yet refuse to pass tax rises and tough reforms to pensions, labour markets and nationalised industries, by the deadline of Wednesday. The mooted loan of £60 billion from the eurozone's emergency fund would then disappear - and the country could very quickly go bust and exit the currency. Even if the deal does hold together in the shot term, there is a danger that politicians are merely 'kicking the can down the road' unless there is a fundamental restructuring of debt. Greece's liabilities are equivalent to around 180% of its GDP - and few economists believe that is sustainable. What has it done for the euro's chances of survival? The currency's reputation has undoubtedly suffered due to the crisis, with the weaknesses in its structure and rules cruelly exposed. But Grexit could have posed an existential threat to the project, and it was crucial for the other member states - most notably Germany - to show the political will hold things together. Does Britain have a dog in this fight? The UK is outside the eurozone, and is not liable for any losses by the ECB. British banks, and financial institutions also have very limited direct exposure to Greek debt. Interest rates on government borrowing tend to fall and the value of sterling increase as investors seek 'safe haven' from turmoil in the eurozone. But failure would have risked crashing stock markets, financial contagion and an economic slowdown in euro states - all of which would have been very damaging to the UK. David Cameron has welcomed the agreement as 'a chance for stability'. Advertisement

Worry: A woman sits at the main gate of the National Bank of Greece as she waits her turn to withdraw a maximum of €120 from her pension

A Greek Orthodox priest walks past the headquarters of the Bank of Greece in Athens yesterday morning. Banks will remain closed through to Thursday, the finance ministry said ahead of the parliamentary vote

People line up to withdraw a maximum of €60 from an ATM outside an Alpha Bank branch in Athens. Banks have been shut in Greece since June 29

Greece's finance ministry says the banks will remain closed through Thursday.

The ministry says the transactions that can be carried out at the few bank branches that are allowed to open are being broadened.

Apart from allowing pensioners without bank cards to withdraw €120 per week, they will also process payments for credit card bills, debts to the state like taxes and utility bills, and insurance company bill payments. They will also allow the transfer of funds between accounts in the same bank.

Banks have been shut in Greece since June 29 and capital controls have been imposed restricting ATM cash withdrawals to €60 per day, and to €120 per week for pensioners and the unemployed without bank cards.

Credit and debit card payments within the country are allowed, as are electronic banking transactions within the country.

Bill payments abroad or sending funds abroad require special permission.

WHAT ARE THE TERMS OF THE NEW GREEK BAILOUT? Under the terms of the bailout, Greece had to adopt drastic economic reforms by Wednesday. To the fury of many Greeks, the terms of the agreement are actually far harsher than those that were categorically rejected by the populace during last week's historic referendum. The reforms include: streamlining the pension system, boosting tax revenue - especially from VAT, liberalising the labour market, privatising the electricity network, extending shop opening hours. Greece has also agreed to set up a trust into which it will place €50 billion worth of assets. While it will not lose control of the assets immediately, in the long term they will be a way of Greece to eventually pay off the bailout loan, with €25 billion will be used to fund recapitalisation of Greek banks and the other €25 billion set aside to pay off Greece's massive debts. In return for the drastic reforms, the European Stability Mechanism - which operates as the eurozone's bailout fund - will grant the country a loan of between €82 billion and €86 billion. From this sum about €10 billion will be ploughed into Greek banks to recapitalise them and hopefully restart the economy. Experts have predicted a total of €25 billion may be needed to achieve this, however. The eurozone is also set to extend the time frame over which Greece pays back its debt. While this will no doubt be welcomed, eurozone leaders refused to write off any of the total figure as Greece is understood to have requested. Advertisement

In Greece, Second World War imagery is being used to portray German Chancellor Angela Merkel (left) and her hardline finance minister Wolfgang Schaeuble (right) as cold-hearted bullies in the mould of the dreaded Gestapo

Hostility: Greeks have accused Germany of using WW2-style tactics to condemn their country to austerity. Pictured is a poster outside an Athens bank depicting German Finance Minister Wolfgang Schaeuble as a Nazi

Yesterday morning an independent United Nations expert on foreign debt said Greece's creditors may break international law if the austerity measures they demand lead to undue hardship.

Juan Pablo Bohoslavsky says he is concerned about reported shortages of medicines and food caused partly by restrictions on money transfers.

He said in a statement Wednesday that European institutions, the International Monetary Fund and the Greek government must ensure that any bailout deal safeguards the right to health care, food and social security.

Bohoslavsky says 'there is real legal risk that some of the harsh austerity measures could be incompatible with European and international human rights law.'

He is scheduled to visit Greece November 30 to December 7.

Tsipras' ally Panos Skourletis, minister for employment, had earlier urged lawmakers to 'vote for the bill', saying the government would 'reduce the painful consequences of this agreement'.

PROFILE: WOLFGANG SCHAEUBLE - THE GERMAN FINANCE MINISTER LOATHED IN ATHENS BUT LOVED IN BERLIN German Finance Minister Wolfgang Schaeuble arrives for the start of the Eurogroup finance ministers meeting earlier this week German Finance Minister Wolfgang Schaeuble, whose tough stance in bailout talks with Greece has turned him into a hate-figure there, has surged to a new high in popularity at home, with 70 per cent of Germans saying they approve of the job he is doing. A survey for public broadcaster ARD showed the 72-year-old Schaeuble is more popular than his boss, Chancellor Angela Merkel, who had a rating of 67 per cent. Foreign Minister Frank-Walter Steinmeier topped the popularity ratings with 73 per cent. ARD said it was the highest rating for Schaeuble. Schaeuble has been praised in the conservative German media in recent weeks for refusing to bow to the demands of Greek Prime Minister Alexis Tsipras in negotiations over a bailout extension. Top-selling daily Bild, which has campaigned for the euro zone to cut the Greeks loose, included a picture of Schaeuble in a superhero costume last month, declaring him 'Euroman' and praising him for defending the currency in the face of the 'Greek rescue circus'. In contrast, Schaeuble is widely disliked in Greece, where some newspapers have run cartoons of him dressed as a Nazi. A survey last month showed that only 14 per cent of Greeks view him positively, compared to 39 per cent for Merkel. Advertisement

A woman burns a Syriza flag during a demonstration against the Greek bailout deal in Athens on Tuesday. Many people in the country have been angered by the agreement

Protest: Greeks took to the streets of Athens on Monday furious at the way Tsipras handled negotiations - rejecting lighter reforms during months of talks before caving in to harsh austerity measures at the 11th hour

Under the deal, Greek assets for privatisation will be parked in a special fund worth up to 50 billion euros, with some 25 billion euros of the money earmarked to recapitalise Greece's banks.

Tsipras said the establishment of the fund meant ordinary Greeks' savings were safe, but added that the reopening of the banks - which have been closed for over a week - depended on the finalising of the deal, which could take a month.

Yesterday morning a German official said criticism by Tsipras of the preliminary bailout deal with creditors wasn't helpful.

Deputy finance minister Jens Spahn criticised Tsipras' comments yesterday night, telling ARD television: 'This is not just about saving (money); it is about this country needing an idea of how it wants grow economically again, how it wants to be successful, change structures and win trust.'

He added: 'If someone then says, "I don't actually stand by what I'm doing now," I find that difficult. That doesn't necessarily create trust.'