The failure of leftwing economics continues to ravage Europe, and the latest politician to run for the hills is Greek Prime Minister Alexis Tsipras, who has resigned, and is calling for early elections. The socialists are in a political civil war, and the opposition is preparing for their own confrontation.
To the public who demands a continuation of their "dependency upon government" lifestyle, seeking subsidies the government can't afford, austerity is not an acceptable option. The bailout is not good enough, it seems, either. In a televised address to the nation, Tsipras said his government had got the best deal possible for the country when it agreed to an 86 billion euro ($95 billion) bailout from other eurozone countries.
Tsipras, during the elections last January, pledged no new taxes, but the new bailout from the euro demands a cut spending and for the government to raise taxes, or else no deal.
Tsipras, during the elections last January, pledged no new taxes, but the new bailout from the euro demands a cut spending and for the government to raise taxes, or else no deal.
The opposition is hammering Tsipras for his hypocrisy.
Tsipras has insisted that although he disagrees with the conditions of the bailout terms, he had no choice but to accept and implement them to keep Greece in the euro, which the vast majority of Greeks want.
Tsipras formally submitted his resignation to the country's president, Prokopis Pavlopoulos, to begin the election process. This will involve letting the two main opposition parties try to form a government. Though by Greek standards, the opposition party called New Democracy is considered right-wing, or conservative, aside from its free market attitudes, the party teeters to the left. The Golden Dawn Party, the other opposition party, is Nazi-inspired. A new government would require approval by parliament, an approval that is likely not to be achieved.
The date for the new election is likely September 20, right smack in the middle of a time period that many economists believe may result in global economic upheaval.
Tsipras has insisted that although he disagrees with the conditions of the bailout terms, he had no choice but to accept and implement them to keep Greece in the euro, which the vast majority of Greeks want.
Tsipras formally submitted his resignation to the country's president, Prokopis Pavlopoulos, to begin the election process. This will involve letting the two main opposition parties try to form a government. Though by Greek standards, the opposition party called New Democracy is considered right-wing, or conservative, aside from its free market attitudes, the party teeters to the left. The Golden Dawn Party, the other opposition party, is Nazi-inspired. A new government would require approval by parliament, an approval that is likely not to be achieved.
The date for the new election is likely September 20, right smack in the middle of a time period that many economists believe may result in global economic upheaval.
Tsipras had delayed a decision on whether to call new elections until after Greece received the first installment from the bailout and made a debt repayment to the European Central Bank, both of which it did Thursday. In his Thursday night address, he acknowledged the bailout deal was not what his anti-austerity government had wanted.
"I wish to be fully frank with you. We did not achieve the agreement that we were hoping for before the January elections," he said. "But ... (the agreement we have) was the best anyone could have achieved. We are obliged to observe this agreement, but at the same time we will do our utmost to minimize its negative consequences. Our target will be to regain our sovereignty from our creditors as soon as possible."
Quoting Turkish left-wing poet Nazim Hikmet, he added, "Our best days have yet to be lived."
It is possible Tsipras will survive, and win the elections. While the hardliners in his party are calling for Greece to leave the euro and returning to the drachma, Tsipras is trying to maintain Greece's relationship with Europe. If he wins the election, a new mandate will likely emerge, allowing Tsipras to distance himself from the hardliners of his party.
"Given its anti-austerity roots, the remaining Syriza party will still struggle to implement the demanding bailout conditions, especially in the likely event that Greece sinks further into recession," said Jennifer McKeown, senior European economist at Capital Economics. "And major reforms seem unlikely to be passed in the period running up to the election."
Teneo Intelligence analyst Wolfango Piccoli said that while Tsipras' gamble to consolidate his power is expected to pay off, it probably will delay the first review of the new bailout program, "especially considering that the caretaker government will not be able to implement any meaningful policy measures."
Greeks were initially taken aback by the prospect of a second national election in well under a year.
European authorities are cautiously optimistic.
The restrictions on bank accounts remain in place, with weekly limits on cash withdrawals and a limit of transferring only up to 500 euros abroad per month. Businesses have faced difficulties, due to the limits, to pay suppliers. The policy was put in place to avoid a bank run.
-- Political Pistachio Conservative News and Commentary
Greek prime minister calls elections after party rebellion - Yahoo News
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