Opposition Party Given Chance To Form New Greek Government

His U-turn in accepting the demands by the country’s creditors led to outrage among hardliners in his Syriza party, with dozens voting against him during the bailout’s ratification in parliament last week.

The Syriza Labour Minister, George Katrougalos, said that the government needed to “reconfirm its mandate” to implement the third Greek bailout and that the party is “crippled by a number of dissident Mps”.

It will be the third-largest bloc in parliament after SYRIZA, which has 124 members, and the conservative opposition party New Democracy (ND), with 76.

After announcing his resignation on 20 August, Greece Prime Minister Alexis Tsipras called for snap polls, as he went to defend Greece’s massive bailout after it triggered a rebellion within his own party. Mr Tsipras does not intend to enter Syriza into a new coalition before an election, Tovima newspaper reports (in Greek).

If neither attempt bears fruit, parliament will be dissolved and a caretaker government appointed until the election, to be held within a month. Tsipras is widely expected to win the vote, although if he does not gain an outright majority he could have to seek a new coalition.

However, it is unlikely that Meimarakis or the new party will be able to form a government.

Under the terms of the bail-out, Athens is expected to carry out further reforms to cut its pension spending and revamp its tax laws in order to remain eligible for more cash in October.

Tsipras resigned as prime minister on Thursday, hours after the debt-stricken country received the first payment from its third bailout in five years.

The procedure has no chance of success, as neither New Democracy nor Popular Unity can muster enough lawmakers for a parliamentary majority in the 300-seat chamber.

“I am resigning because I have now exhausted the mandate which the public gave me in January’s general election”, Tsipras said during his televised address on Thursday night.

“Of course the German government expects, like all other European partners of Greece, the implementation of the reforms listed in the program, ” he added.

The political uncertainty took its toll on the market, with the Athens Stock Exchange closing 3.5 per cent.

As Greece braces itself for a political shuffle and more economic struggles under its ongoing debt burden, Greeks are likely to continue to feel the consequences.

It is a bid to consolidate his power and press ahead with the bailout plan he agreed to this summer with European creditors.