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  • Iglesias said Podemos would continue to back Greece

    Iglesias said Podemos would continue to back Greece's Syriza. | Photo: Reuters

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Spain's Podemos says Greece has been forced to swallow a bad deal with the troika, adding it will continue to back the Syriza government.

Spain's leftist party Podemos said Thursday it will support Greece's bailout deal with the troika, after previously slamming the agreement.

“It's sad, this is the only thing we can do,” Podemos chief Pablo Iglesias told Spain's El Diario newspaper.

While remaining critical of the deal, Iglesias said Podemos would continue to back Greece's Syriza.

Another senior Podemos figure, Inigo Errejon, slammed European leaders for their handling of negotiations with Greece, but said there are now few alternatives left for Athens. He said while the agreement was difficult, it was the only agreement possible “in the face of the intransigence of European leaders.” 

The comments come a day after Podemos bemoaned the Greek deal, which would force Athens to weather renewed austerity in exchange for new bailout funds.

“This agreement was not designed to solve (Greece's) economic problems,” Podemos economics spokesperson Nacho Alvarez told CNBC.

Alvarez argued the deal represented an attempt by international creditors to “break” Syriza with “enormous financial pressure.” He added that Greeks already in vulnerable economic positions could have the most to lose under another wave of austerity.

"(Austerity) entails enormous social costs but also economic costs and at the end of the day is unsustainable," he said.

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Tsipras himself has admitted the agreement isn't ideal, but argued it's necessary to keep Greece from facing financial meltdown.

Describing the creditors earlier this week, Tsipras explained, “I believe they have a vengeful attitude” after insisting on a further round of austerity that is widely believed to have already failed.

However, Tsipras said he understood that the deal contained negative measures.

“I shall not tell the Greek people that this is success story,” he said, continuing by arguing “within this harsh framework, we did our best.”

Addressing the political consequences of the deal the prime minister said that “I will do my best to keep Syriza as a united party,” and that, “We shall not satisfy those who want to put an end to this government.”

He added, "I fought as best I could so I will allow nobody to question whether my choice respects the values of the left. Ideological purity cannot exist within difficult conjuncture. This is an illusion in the culture of our own party."

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