Greece's Tsipras resigns, calls snap polls

1Rebels from Greece's Syriza party say they will form a new parliamentary group, a day after Prime Minister Alexis Tsipras resigned and triggered snap elections.
2The move confirmed a rift at the heart of the radical-left party, which soared to power in January by vowing to end austerity and erase the bulk of Greece's massive public debt mountain.
3At least 25 Syriza rebels will join the new party, named Popular Unity, as Greece launched into a bout of political horse-trading before elections expected to be held in a month's time.
4"In line with our electoral pledges, we are departing from the parliamentary group we formerly belonged to and are forming a new independent parliamentary group," the eurosceptic rebels headed by ex-Communist and former minister Panagiotis Lafazanis said in a statement on Friday.
5Syriza was deeply divided over Athens' acceptance of the mammoth 86 billion euro ($A131.6 billion) bailout package finally agreed with international creditors in July, the third for Greece in five years.
6Syriza rebels had mutinied in three separate parliamentary votes tied to the bailout, effectively leaving Tsipras at the head of a minority coalition government.
7The revolt prompted Tsipras to announce his resignation late on Thursday, unleashing the early elections that are likely to take place on September 20, state news agency ANA said.
8The 41-year-old prime minister told the nation he had worked hard to secure the best possible rescue package for his country, but now needed a clear new mandate from the Greek people after it cost him his parliamentary majority.
9"Now that this difficult cycle has come to an end, I wish to submit to your judgment all that we have done," Tsipras said.
10The move will leave Greece in the hands of a caretaker government until the vote, which would be the second in just eight months and the fourth since 2012.
11Tsipras' resignation came on the same day the debt-crippled nation received its first tranche of bailout funds, effectively starting the rescue package, the third in five years.
12The hard-won package - which kept Greece in the eurozone but comes with demands for painful spending cuts and tax hikes - proved fatal for Syriza, with those on the eurosceptic left implacably opposed to steps Tsipras took to satisfy Greece's creditors.
13It was not immediately clear how much support the new Popular Unity group can take from Tsipras, who is hoping the snap polls will return him to power in a new position of strength.
14Greece's creditors are expected to welcome Tsipras' bid to bolster his hand, with Marcel Fratzscher, an adviser to Germany's economics minister, describing his resignation as "good economic news for Greece and for Europe".
15Berlin insisted it expects Athens to implement the reforms agreed under the bailout deal, saying Tsipras's resignation has not changed anything.
16Tsipras handed his resignation late on Thursday to President Prokopis Pavlopoulos, who then asked Evangelos Meimarakis, head of the main opposition conservative New Democracy party to try to form a coalition.
17According to the constitution, following the resignation of the prime minister, the president must give a three-day exploratory mandate to each of the three largest parties in the parliament to see if they can form a coalition government.
18If they fail, the president must organise early elections.
19Greek commentators and analysts did not rule out the possibility that Lafazanis could be handed a mandate if the right fails.