Rebels' defections should help Greek leader
Tsipras is likely to win the elections, seen by many despite his U-turns as a credible leader doing his best for Greece
New Democracy leader Vangelis Meimarakis said today he would try to form a new government to ensure that early elections are the last option. Prime Minister Alexis Tsipras, leader of the leftist Syriza party, resigned yesterday, seeking a fresh mandate from the electorate. Meimarakis is likely to take the full three days allowed him under the constitution before returning his mandate to President Prokopis Pavlopoulos. Since other parties could theoretically take their turn at government formation, the suggested date for elections -- September 20 -- could slip. Ironically, the next mandate could go to the 25 Syriza rebels, who after voting against the government or abstaining in votes on the bailout, today announced the breakaway anti-austerity Popular Unity party under Panagiotis Lafazanis.
Our judgement
Fresh elections could lead to a more coherent Tsipras-led government able to implement the third bailout; that is why euro-area reaction to the coalition administration's resignation has been so relaxed. There had been a risk Tsipras might lose his majority in future parliamentary votes, and he may have calculated it was better to ditch unruly colleagues and trade on his popularity before controversial reforms take effect.
See GREECE: Debt deal will bring fresh elections soon - August 14, 2015.