The International Monetary Fund has attacked the bailout deal offered by eurozone leaders to Greece.
The creditor said Greece's public debt had become "highly unsustainable" and it needed relief from its debts. The BBC's economics editor Robert Peston said the criticism was savage. The IMF suggested options including writing down the debt - a move most fiercely resisted by creditors.
The Greek parliament must pass four pieces of legislation on Wednesday.
It is the first requirement of the deal offered after hours of negotiation in Brussels on Monday.
A slogan in front of the Greek parliament reads 'Here lies Syriza, the party I once supported'
The measures - which face
resistance from Prime Minister Alexis Tsipras' own MPs - include
taxation increases and pension curbs.
Greece owes about 10% of its debt - €1.6bn (£1.1bn) - to the IMF.
It has missed two deadlines for repayment to the fund and is the first EU country ever to do so.
The
BBC's economics editor says the IMF's assessment makes it much harder
for Mr Tsipras to persuade the Athens parliament to back the measures
needed in Wednesday's votes.
It brings into question the
validity of the reform measures demanded by the eurozone and endorses
the kind of debt write-offs the Greek public have been arguing for, he
adds.
Analysis: Robert Peston, BBC News, Economics editor
Why
on earth should Greek MPs vote for a painful economic reform package
which the IMF - the supposed global arbiter of these things - does not
believe will put the country back on the path to prosperity?
The
eurozone creditors, and Germany in particular, forced Alexis Tsipras -
against his strong preference - to accept IMF participation in the next
formal bailout package to be negotiated if Greek MPs pass the initial
reform measures tonight.
They told him, in effect, he would be
turfed out of the eurozone and into national ruin unless he took more of
the IMF's money and fiscal bossiness.
Which also look tragically
comic tonight - with the IMF saying that if it's all the same to Mrs
Merkel, it would rather not touch Greece with a barge pole.
Or to
be tediously literal, the IMF has made it clear that it does not wish to
participate in any further Greek bailout, unless Germany and the rest
drop their vehement opposition to big write-offs of Greek debt.
Which
should be music to the ears of Mr Tsipras, except that presumably he
would quite like his creditors to agree among themselves, before
presuming to tell him how to run his own shop. Has IMF blown up Greece rescue? The IMF said it regarded forecast rates of growth for Greece as unrealistically high.
Its
analysis released on Tuesday night pointed to Greek government debt
reaching a peak of close to 200% of GDP or national income over the next
two years, which it called "highly unsustainable".
On Tuesday,
Mr Tsipras said in an interview on state television that he did not
believe in the bailout offered but was willing to implement it to "avoid
disaster for the country" and the collapse of the banks.
The
conditional agreement to receive up to €86bn (£61bn; $95bn) from the EU
over three years depends on further economic reforms - including the
labour markets, banks and privatisation - being passed after Wednesday.
Hard-liners
in Mr Tsipras' own Syriza party are likely to rebel and the junior
coalition party, the Independent Greeks, have offered only limited
support for the reforms
Bailout deal at a glance Europe's media stress drama of Greek deal Tough test for Tsipras France buoyed by Brussels agreement Meanwhile,
unions and trade associations representing those including civil
servants, municipal workers and pharmacy owners have called or extended
strikes to coincide with Wednesday's parliamentary votes.
Greece also faces an immediate cash crisis. Banks have been shut since 29 June.
Mr Tsipras warned banks are unlikely to reopen until the bailout deal is ratified, and this could take another month.
A suggestion of providing Greece with emergency funding under the EU-wide European Financial Stability Mechanism has been opposed by Britain, which is not part of the euro but is an European Union member.
VAT changes: Top rate of 23% to extend to processed
food, restaurants etc... 13% to cover fresh food, energy bills, water
and hotel stays, 6% for medicines and books
VAT discount of 30% to be abolished on islands, but remotest islands to keep discount until next year
Corporation tax raised from 26-29% for small companies
Luxury tax for big cars, boats and swimming pools up from 10-13%; farmers' tax up from 13-26%
Early retirement to end (phased in by 2022); retirement age raised to 67
Greek statistics authority Elstat to have full legal independence
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