Greek PM set to announce early elections

With the bailout finally approved in parliament and the first installment of aid disbursed – allowing Greece to repay a debt to the European Central Bank that fell due on Thursday – Tsipras is turning his focus to internal politics.

In an address to the nation, Mr Tsipras said he felt he had a “political and ethical responsibility” to allow the electorate to judge his administration’s work since being elected just seven month ago, after it failed to live up to his Syriza party’s promise to put an end to austerity.

The youthful and charismatic premier insisted that a third rescue package – worth 86 billion euros ($96 billion) – was the only way to prevent the country from defaulting on its enormous debts and crashing out of the eurozone.

An election date in mid- or late September would come before Greece has to enact another round of unpopular austerity measures, including cuts to pension entitlements.

“I want to be honest with you”.

Tsipras’ own left-wing Syriza party rallied against the reforms, but Tsipras and the Parliament accepted them in July as the country reached the brink of bankruptcy.

Tsipras won power only in January and Greece’s complex constitution has special stipulations for holding elections less than 12 months after the previous vote.

He will visit President Prokopis Pavlopoulos later in the evening to submit his resignation. This will involve letting the two main opposition parties – the conservative New Democracy and the Nazi-inspired Golden Dawn – try to form a government.

Although the Greek economy surprised observers by expanding 0.8% in the second quarter of this year, analysts say the challenges facing the country are likely to dampen hopes for a sustained economic recovery.

“It is crucial that Greece maintains its commitments to the euro zone”, he said in a statement to Reuters.

A parliamentary vote to approve the bailout conditions last week led to dozens of Syriza lawmakers voting against him, accusing him of capitulating to unreasonable demands that will plunge the Greek economy further into recession.

Senior aides, such as Energy Minister Panos Skourletis, said the split with the party rebels who are threatening to break away had to be dealt with.

ERT state television said the timing of snap elections would be announced later today.

Another Athenian, Alexandros Brilis, said, “These are not good moves for our country”.

“Hopefully these elections will take place relatively soon so Greece can take important next steps in October, as foreseen”. Martin Selmayr, head of the cabinet of European Commission President Jean-Claude Juncker, tweeted that quick elections “can be a way to broaden support for (the bailout) stability support program”.

In Brussels, his erratic negotiating tactics infuriated creditors, who accused the Greeks of gambling the country’s future by engaging in irresponsible brinkmanship – notably by calling a snap referendum on the bailout, urging citizens to reject the proposals.

“Greece remains under strict capital controls, with weekly limits on cash withdrawals for Greek citizens”.