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Greece crisis: PM Tsipras 'to hold September election' Greece crisis: PM Alexis Tsipras quits and calls early polls
(about 1 hour later)
Greece's Prime Minister Alexis Tsipras is set to call a snap election for 20 September, according to Greek media. Greece's Prime Minister Alexis Tsipras has announced he is resigning and has called an early election.
Mr Tsipras has faced a rebellion within his ruling hard-left Syriza party over a new bailout deal which has been agreed with international creditors. Mr Tsipras, who was only elected in January, said he had a moral duty to go to the polls now a third bailout had been secured with European creditors.
Greece received the first €13bn ($14.5bn) tranche on Thursday, allowing it to repay a debt to the European Central Bank and avoid a messy default. The date of the election has not been announced but earlier reports suggested it would be 20 September.
But the austerity measures needed for the deal angered many in his party. Mr Tsipras had faced a rebellion by members of his Syriza party angry at the bailout's austerity measures.
Mr Tsipras had to agree to further painful state sector cuts, including far-reaching pension reforms, in exchange for the bailout - and keeping Greece in the eurozone. He had to agree to painful state sector cuts, including far-reaching pension reforms, in exchange for the bailout - and keeping Greece in the eurozone.
The overall bailout package is worth about €86bn over three years. The payment of the first tranche was made on Thursday after the bailout deal - Greece's third in five years - was approved by relevant European parliaments. Greece received the first €13bn ($14.5bn) tranche of the bailout on Thursday after it was approved by relevant European parliaments.
It allowed Greece to repay a €3.2bn debt to the European Central Bank and avoid a messy default.
The overall bailout package is worth about €86bn over three years.
Lost majorityLost majority
Alexis Tsipras is to make a televised state address later on Thursday. Alexis Tsipras made the announcement in a televised state address on Thursday.
He is set to submit his resignation to the president to clear the way for the elections, the media reports said. "The political mandate of the 25 January elections has exhausted its limits and now the Greek people have to have their say," he said.
Energy and Environment Minister Panos Skourletis said on state TV: "The certainty is that the need for elections has arisen." Mr Tsipras said he would seek the Greek people's approval to continue his government's programme.
Reacting to the reports, Martin Selmayr, European Commission President Jean-Claude Juncker's chief-of-staff, tweeted that "swift elections in Greece can be a way to broaden support" for the bailout deal. Analysis: Chris Buckler, BBC News, Athens
In January, Alexis Tsipras went to the polls in Greece as a man who would stand against austerity. What a difference seven months makes. Now he is calling elections to ask the Greek public to support the way he is trying to lead this country out of its financial crisis.
That means spending cuts, tax rises and, of course, that third bailout that's already been agreed. All of that is opposed by a sizeable number of hard-left MPs within his own party, Syriza.
Mr Tsipras will argue this election is about bringing certainty to Greece's future. In the short-term at least, though, it will create political uncertainty. And that's becoming a pretty familiar feeling here in Athens.
Mr Tsipras said Greeks would have to decide whether he had represented them courageously with the creditors.
He will visit President Prokopis Pavlopoulos later in the evening to submit his resignation. Greece will then be run by a caretaker government.
Reacting to the news, Martin Selmayr, European Commission President Jean-Claude Juncker's chief-of-staff, tweeted that "swift elections in Greece can be a way to broaden support" for the bailout deal.
Some 43 of Syriza's 149 MPs had either opposed the bailout or abstained in last Friday's Greek parliamentary vote that approved the deal.Some 43 of Syriza's 149 MPs had either opposed the bailout or abstained in last Friday's Greek parliamentary vote that approved the deal.
The rebellion meant Mr Tsipras, who was elected this January, had effectively lost his parliamentary majority.The rebellion meant Mr Tsipras, who was elected this January, had effectively lost his parliamentary majority.
Mr Tsipras had won power on a manifesto of opposing the stringent austerity conditions that he has now accepted.Mr Tsipras had won power on a manifesto of opposing the stringent austerity conditions that he has now accepted.
He said he was forced to do so because a majority of Greeks wanted to stay in the eurozone, and this could not be achieved in any other way.He said he was forced to do so because a majority of Greeks wanted to stay in the eurozone, and this could not be achieved in any other way.
Greece remains under strict capital controls, with weekly limits on cash withdrawals for Greek citizens.Greece remains under strict capital controls, with weekly limits on cash withdrawals for Greek citizens.
If a government resigns within a year of election, the constitution requires the president to ask the second-largest party - in this case the conservative New Democracy - to try to form an administration.If a government resigns within a year of election, the constitution requires the president to ask the second-largest party - in this case the conservative New Democracy - to try to form an administration.
If this fails, the next largest party must be given a chance.If this fails, the next largest party must be given a chance.
However, analysts say both parties can waive this and allow the president to approve the snap election.However, analysts say both parties can waive this and allow the president to approve the snap election.