Syriza Members Form New Party; Greece President Asks Opposition To Form Government

Yes. It’s bad. Panagiotis Lafazanis, the former energy minister and leader of the “Left Platform” faction in Syriza, is forming a new movement aimed at overturning the bailout.

In accordance with the constitution, President Prokopis Pavlopoulos formally invited conservative leader Evangelos Meimarakis on Friday morning to try to form a new government without the need for a new elections.

A vocal critic amongst the party, lawmaker Dimitris Stratoulis, even hinted at the prospect of a splintering group emerging, calling for a “political and social front which will be anti-austerity, democratic and patriotic”.

In addition, some media commentators argued that the elections may prove a positive step to clear the political landscape and lead to a new, more stable, coalition government that will meet Greece’s bailout commitments without further turmoil.

Greece’s European creditors did not appear dismayed by Tsipras’ move, which was widely expected.

In Brussels, the European Commission said it was not anxious about the implementation of the Greek bailout programme, under which Athens must carry out economic reforms in return for aid.

According to a statement released by the European Commission (EC) immediately after the meeting, the new billion-dollar loans will be made available over the next three years to Greece by the ESM.

Prime Minister Alexis Tsipras resigned on August 20, hoping to strengthen his hold on power in snap elections after seven months in office in which he fought Greece’s creditors for a better bailout deal but had to cave in.

The election could hamper or delay a review planned for October of Greece’s progress under its new bailout programme and rekindle concerns about Athens’ ability to honour its pledges, Fitch ratings agency warned.

Tsipras’ reversal in accepting such terms for the bailout caused outrage among Syriza hardliners.

“We undertook the responsibility to stay alive over choosing suicide”, said Prime Minister Tsipras.

Knock-on effects of capital controls imposed in June, which are likely to stay until Greek banks are recapitalised later this year with bailout funds, will also hurt voters.

Meimarakis has three days to seek coalition partners, after which the mandate would be given to the third-largest party in Parliament for a further three days.

“I want to be honest with you”.

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. “The political mandate of the 25 January elections has exhausted its limits and now the Greek people have to have their say”, said the Prime Minister. “But… (the agreement) was the best anyone could have achieved”.