Greek prime minister Alexis Tsipras has announced his resignation and called for snap elections, as he went on the offensive to defend the country’s massive bailout after it triggered a rebellion within his own party.
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Prime Minister Alexis Tsipras met with cabinet members as speculation rose that a quickly-called election will be scheduled, likely in September, an attempt to maintain power with more authority in light of a revolt over the austerity promises made in exchange for the bailout.
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The European Commission, one of the creditor institutions overseeing the new rescue package, earlier welcomed reports of a snap election in Greece, saying it would politically bolster the just launched bailout, the country’s third in five years.
In recent parliamentary votes, a number of Syriza’s 149 lawmakers have withheld their support for laws pushed by Mr. Tsipras’s government to secure a new bailout from Europe.
If New Democracy head Vangelis Meimarakis fails to form a government, the chance will be given to Lafazanis’ new party, and then the far-right Golden Dawn party.
“Under the rule of the caretaker government, which will lead Greece until the polling date, the implementation of the reforms approved by the Greek parliament will nearly inevitably be delayed”.
The political uncertainty is taking its toll on Greece’s stock market, with the Athens Stock Exchange down 1.6 per cent in mid-day trading, after closing 3.5 per cent down Thursday on election speculation.
Greece received the first installment of the latest bailout – 26 billion euros ($29.1 billion) – on Thursday. The package passed, thanks to support from opposition parties.
Tsipras insists he had to accept the unpalatable bailout terms to keep Greece in the euro, the EU’s common currency.
Analysts at Societe Generale said the latest development could prevent the passing of bailout-related legislation – including pension reform and spending measures – until after the elections.
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“In these hard times, we must hold on to – and champion- what matters most: our country and #democracy”.
