Greek lawmakers passed a bailout agreement that keeps thecountry in the euro for now, shifting attention to the EuropeanCentral Bank as it weighs whether to pump more money into thecountry's hobbled financial system.

After more than four hours of debate stretching into the earlyhours of Thursday, 229 members of the 300-seat parliament in Athensapproved new austerity measures that are a precondition of as muchas 86 billion euros ($94 billion) in aid. Among those who opposedthe bill were 32 members of Prime Minister Alexis Tsipras'sCoalition of the Radical Left, or Syriza, a sign the premier mayhave lost his majority.

The vote puts the onus on the ECB and other euro-regiongovernments to deploy more emergency funds that would help Greekbanks gradually re-open and repair the country's battered coffers.The ECB's Governing Council meets in Frankfurt later on Thursdayand Germany's parliament will vote Friday on whether to startbailout negotiations to help Greece cover its debts and paypensions and salaries.

Accepting the agreement with creditors “was a decision whichwill be a burden for me for the rest of my life,” Finance MinisterEuclid Tsakalotos told lawmakers at the start of the debate. “Idon't know if we did the right thing. But I know we did somethingto which there was no alternative.”

European and U.S. equity-index futures followed Asian stockshigher, while the euro slipped 0.1 percent to $1.0941 as of 8:53a.m. in Frankfurt.

German Finance Minister Wolfgang Schaeuble said the vote was a“step further forward,” though reiterated his view that a temporaryexit from the 19-nation euro region may be “the better way” sinceit would allow the debt forgiveness which is necessary yet bannedunder euro rules.

Given Greek financing needs, “we'll see in the negotiations ifthere's even a way to arrive at a program,” he said in an interviewon Deutschlandfunk radio. “I don't know, nobody knows at the momenthow this is supposed to work without a haircut and everybody knowsthat a haircut is incompatible with euro membership.”

Finding a way to open banks and allow normal commerce to resumewill be the Greek government's first priority. In its Thursdaymeeting, the ECB will discuss whether to increase the level ofso-called emergency liquidity assistance it provides to Greeklenders, which have been shut for more than two weeks to stemwithdrawals.

Bridge Financing

Greece also needs to secure bridge financing to cover immediateneeds that include making a 3.5 billion-euro payment to the ECB dueon July 20. The European Union has proposed a facility worth 7billion euros to tide the country over until implementation of thefull bailout begins. Euro-area finance ministers are due to hold aconference call on Greece on Thursday morning.

Europe's most indebted country came closer than ever to beingforced out of the single currency this month after Tsipras stunnedEuropean leaders by calling a snap referendum on spending cuts andtax rises demanded by creditors. Despite a clear majority of Greeksvoting “no,” he was forced to capitulate to an even more onerouspackage that political chiefs said was the only way for Greece toremain in the euro.

Yanis Varoufakis, the former finance minister who clashedrepeatedly with Schaeuble, was among 38 members of Syriza's149-member parliamentary caucus who either voted “no” orabstained.

The vote outcome “constitutes a serious division of Syriza,”Greek government spokesman Gabriel Sakellaridis said in astatement. Tsipras's priority now is to conclude an agreement withGreece's creditors, he said.

The level of opposition suggests Tsipras may be forced to rulewith a minority government, relying on opposition lawmakers to passlegislation, or co-opt the opposition into a government of nationalunity.

“A minority administration will prove unsustainable, making anational unity government likely,” Eurasia Group analyst MujtabaRahman said in a note to clients. Such a government, comprising allthe major parties, “may prove to be the only way possible” tosecure bailout funds, Rahman said.

As debate began on the bailout bill, police fired tear gasoutside parliament to disperse anti-austerity protesters,highlighting the challenges Tsipras faces selling further spendingcuts to a country already deep in recession. About 13,000 peoplegathered to protest in central Athens, police spokesman TakisPapapetropoulos said, although by about 9:45 p.m. most had beendispersed by riot officers.

Tsipras, who was elected in January pledging to end austerityand forge a new deal with creditors, didn't rise to speak insupport of the bailout bill in parliament until the early hours ofThursday morning.

“I had a choice of a deal I did not agree with, or a disorderlydefault, or Schaeuble's choice of a euro exit,” Tsipras said. “I'mthe last person to beautify an agreement with which I disagree inmany of its points.”

Bloomberg News

Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.