Greek bailout: Alexis Tsipras 'to call snap elections'

1The Greek prime minister, Alexis Tsipras, is due to call snap elections on Thursday, sending voters back to the polls as early as next month, according to the state television broadcaster in Athens.
2As the debt-crippled country received the first tranche of its new 86bn ( 61bn) bailout, Tsipras was reportedly holding discussions in parliament with his closest aides and expected to make an announcement by early evening.
3The 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, nearly one-third of whose 149 MPs either voted against the deal or abstained.
4Syriza rules in a coalition with the right-wing, anti-austerity party Independent Greeks (Anel).
5The revolt by hardliners angry at what they saw as a betrayal of the party's pledge to fight austerity left Tsipras short of the 120 votes he would need - two-fifths of the 300-seat assembly - to survive a censure motion and he was widely expected to call a confidence vote this week or next.
6But 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.
7This entails a radical overhaul of the Greek economy including further tax hikes, spending cuts and major reforms of health, welfare, pensions and taxation.
8"Everything is possible," an official told reporters when asked about possible early elections.
9The state broadcaster, ERT, predicted an announcement later on Thursday.
10The Greek constitution allows elections to be held at a month's notice, making mid- or late September likely dates for a poll.
11Tsipras could also decide to wait until early October for the vote, by which time Greece's creditors would have carried out their first review of the country's progress in meeting the bailout conditions.
12They may have also come to a decision about debt relief - potentially a major electoral asset for the prime minister.
13In either event, the president of Greece's supreme court, Vassiliki Thanou-Christophilou, a vocal opponent of Greece's bailouts, was expected to be appointed caretaker prime minister to oversee a transitional government.
14At the end of a bruising seven months of negotiations with Greece's international creditors, the prime minister eventually signed up to a deal that many in his party see as a U-turn on the anti-austerity platform that saw it sweep to power in elections last January.
15Tsipras has insisted that accepting creditor demands for yet more tough reforms was the only way to ensure his country remains in the eurozone, which is a key demand among the electorate according to opinion polls.
16But Syriza is now thought to be likely to formally split.
17The leader of its dissident Left Platform, the former energy minister Panagiotis Lafazanis, last week announced he intended to form a new anti-bailout movement, accusing the government of capitulating to the "dictatorship of the eurozone".
18Analysts have suggested Tsipras has every interest in calling early elections, to sideline his hardliners, capitalise on the disarray of the centre-right and profit from his own popularity ratings, which for the moment remain strong.
19But that situation that may well change as the punishing effects of the latest rescue programme, including pension cuts and VAT increases, start to become apparent.
20The country's energy minister and close Tsipras adviser, Panos Skourletis, said on Thursday that the divisions within Syriza had to be dealt with one way or another.
21"The political landscape must clear up. We need to know whether the government has or does not have a majority," he told ERT.
22Syriza is thought to be likely to call a party congress in September to resolve its internal differences, but Skourletis said Tsipras should try to move faster.
23"I would say elections first, then the party congress," he said.
24An opinion poll last month put support for Syriza at 33.6%, making it by far the country's most popular party - but not popular enough to govern without a coalition partner.
25No polls have been published since then, but Syriza insiders remain optimistic.
26Dimitris Papadimoulis, a Syriza MEP, told Mega TV: "These elections, whenever they are announced by the government, will provide a stable governing solution. My feeling is that Syriza will have an absolute majority,."