Tsipras himself said in a televised address on Thursday that he needed a “clear mandate for a strong government”, claiming he had a “moral and political obligation” to let voters decide who should lead the country in this “new hopeful era”. Among the options being discussed are for him to call a vote of confidence in his government or to call an early election, potentially in September.
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Though his eight months at the helm of Europe’s most indebted country were beset by turmoil and brought the economy to the brink of ruin, Tsipras used the broadcast to list his achievements, from clinching a new aid package to securing a commitment from euro-area partners to consider debt relief.
(Giannis Kotsiaris/ InTime News via AP).
After 18 hours of negotiations, culminating six months of wider talks, Tsipras obliged Greece to accept painful reforms and privatisations in return for staying in the euro.
Hardline lawmakers in Tsipras’ radical left Syriza party announced Friday they were splitting from the party and forming their own movement, which becomes the third largest group in Parliament.
Experts said Mr Tsipras was heading to the polls before the brunt of the new austerity measures are felt in Greece and while he still remains popular.
Greece’s European creditors did not appear dismayed by Tsipras’ move, which was widely expected.
But government sources signalled he may now skip that step and go straight to the country, in an attempt to silence rebels and shore up support for the three-year bailout programme. That’s because, he says, it’s the first time since the crisis began, that there isn’t a major party contesting the logic of the bailout.
On Thursday, Jeroen Dijsselbloem, who heads the Eurogroup of euro zone finance ministers, said he hoped Tsipras’ resignation and new elections would not delay or derail the bailout package Athens has negotiated with its creditors.
None are believed to have enough allies to gain Parliament’s support.
In Brussels, European Commission spokeswoman Annika Breidthardt said the EU executive body was confident the bailout program would be adhered to.
Klaus Regling, the managing director of the Eurozone Stability Mechanism (ESM) that manages the bailout signalled Greece was making a fresh start. This will involve letting the two main opposition parties – the conservative New Democracy and the Nazi-inspired Golden Dawn – try to form a government. If he fails, the new party formed by Syriza rebels will get a chance.
“Popular Unity proposes scrapping Greece’s bailout agreement and opposes repaying the majority of Greece’s debt, Mr. Lafazanis said”.
Meimarakis also met with the speaker of Parliament to seek her contribution in trying to cobble together a government and avoid early elections.
If, as expected, neither attempt bears fruit, parliament will be dissolved and a caretaker government appointed to lead the country to early elections within a month.
This would make Greece’s reform plans “a bit more credible”.
But the deal came with strict terms for more belt-tightening.
Tsipras’ reversal in accepting such terms for the bailout caused outrage among Syriza hardliners.
The prime minister won parliamentary backing for the tough bailout programme last week despite a large-scale rebellion among members of his ruling left-wing Syriza party, almost one-third of whose 149 MPs either voted against the deal or abstained.
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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.
