Greek elections imperative for stability: minister

Mr Schaeuble says he backs the new bailout deal – although he had earlier put forward a plan for Greece to take a “time out” from the euro, in order to stabilise its precarious finances.

But Schaeuble said that he was now more optimistic about Greece’s hope of exiting its debt mire. While fresh elections may delay implementation of the bailout, they could also deliver Tsipras a strengthened mandate to enact a package that runs counter to the anti-austerity platform Syriza was elected on in January.

Both Schauble and German Chancellor Angela Merkel have warned that Greece must stick strictly to the bailout program if funding for the cash-strapped country is to continue.

On the other hand, Seibert said that the German Government values that there is no longer the talk of a haircut of Greek debt “as happened for a while”, as he declared this measure ‘is not possible for legal reasons’.

The prime minister is widely expected to call a confidence vote in his government this week, after dozens of Syriza politicians voted against him during the ratification of the new bailout deal in parliament last Friday.

Ahead of a crucial vote on Wednesday on whether Berlin will back a third aid package to Greece, the German leader said the euro challenge paled next to the historic challenge posed by the explosion of inward migration to the continent.

That was fewer than a rebellion by as many as 120 MPs that had been feared. He said he was now convinced of the Greek government’s willingness to reform. On Friday, the 19-member Eurozone approved the deal, which states Greece will receive the amount over three years in exchange of strict pro-market reforms. “That is why Merkel would like to keep the International Monetary Fund on board”, said Berenberg Bank economist Holger Schmieding. Tsipras had to rely on opposition support to get the bailout deal through parliament, and another minister argued that elections would be a way of achieving political stability.

While his views might appear highly patronising to some, they are shared by a growing number of conservatives who have angrily resisted threats this week by Volker Kauder, the CDU’s chief whip, to toe the party line or face consequences. All eyes are now on the German parliament with expectations that German lawmakers would support the bailout which would provide the much needed liquidity to Greece.

Tuesday’s vote was largely symbolic because Mr Rajoy’s Popular Party holds an absolute majority in parliament.

Last week Lafazanis took a step towards breaking away from Syriza, itself a coalition of the radical left, by calling for a new anti-bailout movement. Tsipras would remain dominant as head of a coalition government, even if the rebels win 5 percent and he would only be significantly weakened if their share rises to 8 percent of the vote or more, he said.