Greece eyes breakthrough for €53.5bn bailout

The momentum appeared to be behind Greece striking a deal with its creditors for a €53.5bn three-year bailout in a dramatic somersault for the Athens politicians.

But the eurozone politicians were also changing their tune with the Germans coming around to reducing the cost of the €195bn already lent to the Greeks by the EU through lengthening maturities.

The Greek parliament appeared set to accept the deal that cuts pensions, increases Vat and corporation tax, reinstates privatisation, and cuts military spending over the next 18 months.