Tsipras has faced a rebellion within his ruling hard-left Syriza party over a new bailout deal which has been agreed with worldwide creditors.
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Greek Prime Minister Alexis Tsipras will submit his resignation to the country’s president Thursday, making way for early elections scheduled for September 20, government officials report. The board comprises the finance ministers of the 19-country eurzone.
Eurogroup approved Greek third bailout package worth up to 86 billion euros under the European Stability Mechanism on August 14 to keep the debt-torn country afloat and secure its stay in Europe.
As part of the five-year bailout agreement, Greece is expected to increase taxes and make tough spending cuts. “We need to know whether the government has or does not have a majority”, he told ERT.
Therefore, another group advises Tsipras that he should not consider the holding of elections earlier than October 11.
Because Mr Tsipras’ government has been in power for less than 12 months, opposition parties would be given three days to try and form a government – but if they fail, a general election will be called by the president.
“Given its anti-austerity roots, the remaining Syriza party will still struggle to implement the demanding bailout conditions, especially in the likely event that Greece sinks further into recession”, said Jennifer McKeown, senior European economist at Capital Economics.
Speculation of snap elections has been growing for some time, and the political uncertainty has had a detrimental impact on the Greek Stock Exchange.
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The move – a virtual formality – came after Germany’s parliament approved the bailout package, along with the assemblies of other creditor nations, removing a big hurdle to release the new loans. There are weekly limits on cash withdrawals and Greeks can only transfer up to 500 euros overseas per month.
