Now the government is facing a new controversy about a eurozone exit plan, creating uncertainty for this uneasy alliance.
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And as Reuters also noted, former Greek finance minister Yanis Varoufakis isn’t helping Tsipras’ efforts to gain support at home, as Varoufakis has been speaking widely and freely about bailout negotiations and Greece’s contingency plans were it to fall out of the euro.
Greece closed its banks for three days earlier this month because of fears coffers would be drained ahead of the referendum. In theory, a parallel system formed from the effective cloning of tax accounts would have allowed the finance ministry to continue payments in the form of so-called IOUs.
Officials close to Tsipras said he intends to call a national Syriza convention in September to cleanse the party of its dissident Marxist-oriented Europhobe wing and reassert his pro-Europe leadership.
In essence, the plan, which Tsipras ultimately blocked, would have created a “functioning parallel system” to give the government “some breathing space”.
“It would be dollar- denominated but in the decrease of a cap it may be designed to your new drachma”, Varoufakis said.
“The job was strictly to study the operational issues that would arise if Greece was to issue scrip or if were forced out of the euro“, said Galbraith, son of the late prominent economist John Kenneth Galbraith.
An outcry was motivated by the recording among competitors parties.
ATHENS Greek Prime Minister Alexis Tsipras said on Wednesday he may be required to call an early election if he fails to have a parliamentary largest majority.
The “political brinkmanship, as Bloomberg suggested, has been the bane of getting Greece’s economy back on track since the first bailout by European Union and global Monetary Fund in 2010″.
Greece’s government launched negotiations Tuesday on a new multi-billion-euro bailout programme, insisting that it has taken all the measures agreed with creditors for reaching a deal.
But the reforms have come at a price for Tsipras.
Members of Syriza’s central committee are meeting on Thursday to discuss the future of the fragmented party, which is under pressure due to the revolt by members of the far-left Left Platform wing.
The talks will mostly cover a reform program Greece must implement to receive phased disbursements of loans, money it needs to meet its debt service obligations and help recapitalise the banks. “After that (there will be) a new government with a fresh mandate”.
Michael Hewson, chief market analyst at CMC Markets, thought the completion of a bailout deal by then was unlikely and that more wrangling over reforms were on the horizon.
Earlier this month, Tsipras saw more than 30 of his 149 lawmakers mutiny in two separate votes in parliament to approve tax hikes, a pension overhaul and administrative reforms tied to the bailout, effectively rendering his coalition a minority government.
Though the measures drastically contained budget overspending, they hit economic activity hard and drove unemployment to record peacetime highs.
Varoufakis said Greece is a pawn in a much larger chess game and the real message is being sent to France, which is “trying to buy time to reduce their deficit” and keep creditors happy, who he said “lack coordination”.
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The timing of the move and any trade restrictions will be decided by a finance ministry decree, said the spokeswoman, who asked not to be identified in line with policy.
