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Greek PM resigns to trigger snap elections - as it happened Greek PM resigns to trigger snap elections - as it happened
(5 months later)
9.26pm BST21:26 9.26pm BST
21:26
That’s all for tonight, unless anything amazing happens in the next couple of hours.That’s all for tonight, unless anything amazing happens in the next couple of hours.
Here’s our latest news story, by Jon Henley:Here’s our latest news story, by Jon Henley:
Seven months after he was elected on a promise to overturn austerity, the Greek prime minister, Alexis Tsipras, has announced he is stepping down to pave the way for snap elections next month.Seven months after he was elected on a promise to overturn austerity, the Greek prime minister, Alexis Tsipras, has announced he is stepping down to pave the way for snap elections next month.
As the debt-crippled country received the first tranche of a punishing new €86bn (£61bn) bailout, Tsipras said on Thursday he felt “a moral obligation to place this deal in front of the people, to allow them to judge ... both what I have achieved, and my mistakes”.As the debt-crippled country received the first tranche of a punishing new €86bn (£61bn) bailout, Tsipras said on Thursday he felt “a moral obligation to place this deal in front of the people, to allow them to judge ... both what I have achieved, and my mistakes”.
The 41-year-old Greek leader is still popular with voters for having at least tried to stand up to the country’s creditors and his leftwing Syriza party is likely to be returned to power in the imminent general election, which government officials told Greek media was most likely to take place on 20 September.The 41-year-old Greek leader is still popular with voters for having at least tried to stand up to the country’s creditors and his leftwing Syriza party is likely to be returned to power in the imminent general election, which government officials told Greek media was most likely to take place on 20 September.
The prime minister insisted in an address on public television that he was proud of his time in office and had got “a good deal for the country”, despite bringing it “close to the edge”. He added he was “shortly going to submit my resignation, and the resignation of my government, to the president”.The prime minister insisted in an address on public television that he was proud of his time in office and had got “a good deal for the country”, despite bringing it “close to the edge”. He added he was “shortly going to submit my resignation, and the resignation of my government, to the president”.
The prime minister will be replaced for the duration of the short campaign by the president of Greece’s supreme court, Vassiliki Thanou-Christophilou – a vocal bailout opponent – as head of a caretaker government....The prime minister will be replaced for the duration of the short campaign by the president of Greece’s supreme court, Vassiliki Thanou-Christophilou – a vocal bailout opponent – as head of a caretaker government....
More here:More here:
Related: Greek bailout: Alexis Tsipras steps down to trigger new electionsRelated: Greek bailout: Alexis Tsipras steps down to trigger new elections
And here’s our Athens correspondent, Helena Smith, explains how Tsipras is taking a calculated gamble:And here’s our Athens correspondent, Helena Smith, explains how Tsipras is taking a calculated gamble:
After the country’s latest rescue – and the onerous terms the young prime minister has agreed to – his popularity ratings will surely have been dented. In a matter of weeks he has lost more than a quarter of his own MPs, radicals who not only feel he has betrayed the cause but will campaign as the only leftists now left to carry the anti-bailout flame.After the country’s latest rescue – and the onerous terms the young prime minister has agreed to – his popularity ratings will surely have been dented. In a matter of weeks he has lost more than a quarter of his own MPs, radicals who not only feel he has betrayed the cause but will campaign as the only leftists now left to carry the anti-bailout flame.
Few politicians have so reneged on their pre-electoral promises as the Syriza leader, who came to power vowing to “cancel” austerity and all the evils it had visited on Greece. And, yet, paradoxically Tsipras remains more popular than any of his political rivals. His handling of negotiations with international creditors has not elicited the widespread condemnation one might have expected. Most Greeks still regard the tortuous talks as a robust defence of their rights. The fact that the terms attached to the €86bn (£61bn) rescue were harder than any to date has ultimately been seen as better than euro exit. And unlike any prime minister to date Tsipras has been credited with internationalising the problem of Greece’s unsustainable debt burden. The International Monetary Fund, one of three creditors to Greece and once the country’s harshest economic critic, has become the biggest proponent of debt relief as the basis for recovery.....Few politicians have so reneged on their pre-electoral promises as the Syriza leader, who came to power vowing to “cancel” austerity and all the evils it had visited on Greece. And, yet, paradoxically Tsipras remains more popular than any of his political rivals. His handling of negotiations with international creditors has not elicited the widespread condemnation one might have expected. Most Greeks still regard the tortuous talks as a robust defence of their rights. The fact that the terms attached to the €86bn (£61bn) rescue were harder than any to date has ultimately been seen as better than euro exit. And unlike any prime minister to date Tsipras has been credited with internationalising the problem of Greece’s unsustainable debt burden. The International Monetary Fund, one of three creditors to Greece and once the country’s harshest economic critic, has become the biggest proponent of debt relief as the basis for recovery.....
Related: Greek elections: Alexis Tsipras makes a calculated gambleRelated: Greek elections: Alexis Tsipras makes a calculated gamble
9.06pm BST21:06 9.06pm BST
21:06
More drama, this time in New York. The US stock market suffered a late selloff, wiping 2% off the Dow Jones industrial average and the wider S&P 500 index.More drama, this time in New York. The US stock market suffered a late selloff, wiping 2% off the Dow Jones industrial average and the wider S&P 500 index.
That follows big losses in China this morning, and Europe today.That follows big losses in China this morning, and Europe today.
S&P 500 falls 2.1% for worst day since February 2014 http://t.co/0Y96fOt7su pic.twitter.com/7EhIsZz01MS&P 500 falls 2.1% for worst day since February 2014 http://t.co/0Y96fOt7su pic.twitter.com/7EhIsZz01M
Analysts believe shares in London will keep falling tomorrow, after entering correction territory today.Analysts believe shares in London will keep falling tomorrow, after entering correction territory today.
The IG currently forecasting a -65 start for the FTSE100 on Friday at 6303. Low for 2015 is 6298.The IG currently forecasting a -65 start for the FTSE100 on Friday at 6303. Low for 2015 is 6298.
9.02pm BST21:02 9.02pm BST
21:02
A late rumour from Greece - Syriza’s left-wingers could be planning to split into their own parliamentary grouping.A late rumour from Greece - Syriza’s left-wingers could be planning to split into their own parliamentary grouping.
There are around 40 MPs in the Left Platform, so they would leapfrog Golden Dawn to become the third largest party behind Syriza and New Democracy.There are around 40 MPs in the Left Platform, so they would leapfrog Golden Dawn to become the third largest party behind Syriza and New Democracy.
That would mean they could get the mandate to form a government (!) before general elections are called (see earlier explanation).That would mean they could get the mandate to form a government (!) before general elections are called (see earlier explanation).
#Greece | Left Platform indicate they may form a parl group. If so, they will be 3rd strongest group, will get 3rd mandate & not Golden Dawn#Greece | Left Platform indicate they may form a parl group. If so, they will be 3rd strongest group, will get 3rd mandate & not Golden Dawn
Updated at 9.02pm BST Updated
8.59pm BST20:59 at 9.02pm BST
8.59pm BST
20:59
Eurogroup chief hopes elections will bolster bailout supportEurogroup chief hopes elections will bolster bailout support
Less than a week ago, the eurogroup was celebrating signing off Greece’s third bailout.Less than a week ago, the eurogroup was celebrating signing off Greece’s third bailout.
Tonight, its president Jeroen Dijsselbloem is urging Greece not to abandon its “commitment” to the currency bloc.Tonight, its president Jeroen Dijsselbloem is urging Greece not to abandon its “commitment” to the currency bloc.
In a statement sent to Reuters, Dijsselbloem said:In a statement sent to Reuters, Dijsselbloem said:
“I recall the broad support in the Greek parliament for the new program and reform package and I hope the elections will lead to even more support in the new Greek parliament.”“I recall the broad support in the Greek parliament for the new program and reform package and I hope the elections will lead to even more support in the new Greek parliament.”
8.44pm BST20:44 8.44pm BST
20:44
It really has been quite a year (and there’s still four months to go!)It really has been quite a year (and there’s still four months to go!)
Greece's Tsipras resigns, calls snap polls to beat party revolt http://t.co/8RKyBfKc57 pic.twitter.com/GLEuZQW9TqGreece's Tsipras resigns, calls snap polls to beat party revolt http://t.co/8RKyBfKc57 pic.twitter.com/GLEuZQW9Tq
8.41pm BST20:41 8.41pm BST
20:41
City economists are already warning that Tsipras’s resignation shows it will be very hard to implement Greece’s bailout programme.City economists are already warning that Tsipras’s resignation shows it will be very hard to implement Greece’s bailout programme.
Jennifer McKeown, senior European economist at Capital Economics, said:Jennifer McKeown, senior European economist at Capital Economics, said:
“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.“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.
And major reforms seem unlikely to be passed in the period running up to the election.”And major reforms seem unlikely to be passed in the period running up to the election.”
8.04pm BST20:04 8.04pm BST
20:04
Greek opposition may try to form minority government.Greek opposition may try to form minority government.
Under the Greek constitution, if the PM resigns the mandate to form a government is passed to the largest opposition party, for three days.Under the Greek constitution, if the PM resigns the mandate to form a government is passed to the largest opposition party, for three days.
So Evangelos Meimarakis of New Democracy could spend the weekend trying to form a minority government to replace Tsipras’s administration, as he just pledged.So Evangelos Meimarakis of New Democracy could spend the weekend trying to form a minority government to replace Tsipras’s administration, as he just pledged.
Meimarakis says he'll meet Potami & PASOK leaders, as well as other opposition chiefs in bid to form minority gov't #GreeceMeimarakis says he'll meet Potami & PASOK leaders, as well as other opposition chiefs in bid to form minority gov't #Greece
If he fails, the mandate would then transfer to the second-largest opposition party -- currently the extreme right-wing Golden Dawn.If he fails, the mandate would then transfer to the second-largest opposition party -- currently the extreme right-wing Golden Dawn.
Creating a minority government would be rather challenging, as Syriza holds 149 of the 300 seats in the Greek parliament.Creating a minority government would be rather challenging, as Syriza holds 149 of the 300 seats in the Greek parliament.
Pledge by New Democracy's Meimarakis to try to form minority gov't seems more attempt to rain on Tsipras parade than genuine effort #GreecePledge by New Democracy's Meimarakis to try to form minority gov't seems more attempt to rain on Tsipras parade than genuine effort #Greece
Updated at 8.07pm BST Updated
7.46pm BST19:46 at 8.07pm BST
7.46pm BST
19:46
The head of the largest opposition party, Evangelos Meimarakis of New Democracy, has pledged to “explore all avenues” to avoid snap elections.The head of the largest opposition party, Evangelos Meimarakis of New Democracy, has pledged to “explore all avenues” to avoid snap elections.
That suggests Meimarakis might try to form a government -- meaning elections might not be called tonight after all.That suggests Meimarakis might try to form a government -- meaning elections might not be called tonight after all.
ND leader Meimarakis says he will take the mandate @atsipras has handed over and he will try to form a gvt #GreeceElectionsND leader Meimarakis says he will take the mandate @atsipras has handed over and he will try to form a gvt #GreeceElections
Meimarakis also took a few pot-shots at Tsipras’s track record, as the election campaign got underway.Meimarakis also took a few pot-shots at Tsipras’s track record, as the election campaign got underway.
Iliana Magra, a politics student in Greece, has tweeted the details:Iliana Magra, a politics student in Greece, has tweeted the details:
#Meimarakis : no one can understand why Mr #Tsipras resigned today.#Meimarakis : no one can understand why Mr #Tsipras resigned today.
#Meimarakis : #Tsipras is popular but he is a bit of liar#Meimarakis : #Tsipras is popular but he is a bit of liar
#Meimarakis : Never before has a PM caused -by himself- 3 electoral processes. #GreeceElections#Meimarakis : Never before has a PM caused -by himself- 3 electoral processes. #GreeceElections
(that’s January’s general election, July’s referendum, and the upcoming snap poll)(that’s January’s general election, July’s referendum, and the upcoming snap poll)
Updated at 7.56pm BST Updated
7.35pm BST19:35 at 7.56pm BST
7.35pm BST
19:35
Moody’s has warned that Tsipras has put Greece’s third bailout programme at risk.Moody’s has warned that Tsipras has put Greece’s third bailout programme at risk.
The rating agency fears that Greece could miss out on some of the €86bn loan deal, if it fails to implement the measures agreed with creditors.The rating agency fears that Greece could miss out on some of the €86bn loan deal, if it fails to implement the measures agreed with creditors.
Or in Moody’s words:Or in Moody’s words:
“The Greek Prime Minister Tsipras’s move to step down and call snap early elections on 20 September could elevate programme implementation concerns and, potentially, puts future official sector disbursements at risk.”“The Greek Prime Minister Tsipras’s move to step down and call snap early elections on 20 September could elevate programme implementation concerns and, potentially, puts future official sector disbursements at risk.”
7.22pm BST19:22 7.22pm BST
19:22
And here’s Tsipras, asking for elections to be held as soon as possible:And here’s Tsipras, asking for elections to be held as soon as possible:
Greek PM @atsipras is now submitting his resignation to the President of the Republic Pavlopoulos #GreeceElections pic.twitter.com/sbCxETfc0NGreek PM @atsipras is now submitting his resignation to the President of the Republic Pavlopoulos #GreeceElections pic.twitter.com/sbCxETfc0N
7.19pm BST19:19 7.19pm BST
19:19
Tsipras is meeting with president Pavlopoulis right now - on a rather large sofa:Tsipras is meeting with president Pavlopoulis right now - on a rather large sofa:
7.13pm BST19:13 7.13pm BST
19:13
Greek PM resigns: instant reactionGreek PM resigns: instant reaction
Eurocrisis analysts and journalists are struck by Alexis Tsipras’s split from the left-wing side of his own Syriza party:Eurocrisis analysts and journalists are struck by Alexis Tsipras’s split from the left-wing side of his own Syriza party:
Express elections forthcoming in #Greece. PM Tsipras throws the gauntlet at the #Leftist Platform, challenging them as #drachme advocatesExpress elections forthcoming in #Greece. PM Tsipras throws the gauntlet at the #Leftist Platform, challenging them as #drachme advocates
after years of struggle and opposition to the Troika, that the Greek left will have to start from scratch is really depressing.after years of struggle and opposition to the Troika, that the Greek left will have to start from scratch is really depressing.
Tsipras presenting SYRIZA as best option compared to Left Platform (pro-Grexit) and traditional parties (too soft with creditors). #GreeceTsipras presenting SYRIZA as best option compared to Left Platform (pro-Grexit) and traditional parties (too soft with creditors). #Greece
If anyone thinks the €zone isn't an engine of convergence, just look at Alexis Tsipras. Six months in and he's turned into Francois HollandeIf anyone thinks the €zone isn't an engine of convergence, just look at Alexis Tsipras. Six months in and he's turned into Francois Hollande
7.06pm BST19:06 7.06pm BST
19:06
Snap summary: Tsipras the moderate bids for new mandateSnap summary: Tsipras the moderate bids for new mandate
And that’s it.And that’s it.
Alexis Tsipras has fired the starting pistol on a new bout of political drama in Greece, by announcing his resignation after seven dramatic months in office.Alexis Tsipras has fired the starting pistol on a new bout of political drama in Greece, by announcing his resignation after seven dramatic months in office.
After one general election, and one referendum, already this year Greeks will head to the ballot boxes again this autumn.After one general election, and one referendum, already this year Greeks will head to the ballot boxes again this autumn.
If Tsipras has his way, he’ll be re-elected with a new mandate to implement the third bailout agreement. He’s sticking to his position that he did the best he could for Greece, despite failing to deliver his vow to end austerity.If Tsipras has his way, he’ll be re-elected with a new mandate to implement the third bailout agreement. He’s sticking to his position that he did the best he could for Greece, despite failing to deliver his vow to end austerity.
The Greek PM also appears to be reinventing himself as a moderate. To do that, he must lose the leftist elements in his party, whose refusal to back the deal forced him to call snap elections.The Greek PM also appears to be reinventing himself as a moderate. To do that, he must lose the leftist elements in his party, whose refusal to back the deal forced him to call snap elections.
Crucially, Tsipras did not say when new elections will be held. Perhaps that responsibility will fall to president Prokopis Pavlopoulos, who should be receiving Tsipras right now.Crucially, Tsipras did not say when new elections will be held. Perhaps that responsibility will fall to president Prokopis Pavlopoulos, who should be receiving Tsipras right now.
Greece, the rest of the eurozone, and the world’s financial market faces an anxious few weeks while the election takes place.Greece, the rest of the eurozone, and the world’s financial market faces an anxious few weeks while the election takes place.
Updated at 7.15pm BST Updated
6.53pm BST18:53 at 7.15pm BST
6.53pm BST
18:53
I am proud of our time in office, says Tsipras, adding that Europe is not the same since Syriza took power in late January.I am proud of our time in office, says Tsipras, adding that Europe is not the same since Syriza took power in late January.
6.52pm BST18:52 6.52pm BST
18:52
Tsipras is pitching himself in the centre ground between the left-wing elements in his own party who wanted Grexit, and mainstream opposition parties who signed up to previous bailout deals.Tsipras is pitching himself in the centre ground between the left-wing elements in his own party who wanted Grexit, and mainstream opposition parties who signed up to previous bailout deals.
#Greek PM #Tsipras : you will judge us, the ones that promoted the drachma pathway and the ones that served the old system#Greek PM #Tsipras : you will judge us, the ones that promoted the drachma pathway and the ones that served the old system
6.51pm BST18:51 6.51pm BST
18:51
This TV address is swiftly turning into a party election broadcast, even though the election hasn’t even been called yet.This TV address is swiftly turning into a party election broadcast, even though the election hasn’t even been called yet.
Tsipras says that voters must decide if his government showed “courage” in its talks with creditors, and whether the bailout deal will allow Greece to recover.Tsipras says that voters must decide if his government showed “courage” in its talks with creditors, and whether the bailout deal will allow Greece to recover.
6.49pm BST18:49 6.49pm BST
18:49
I am resigning because I have now exhausted the mandate which the public gave me in January’s general election, says Tsipras.I am resigning because I have now exhausted the mandate which the public gave me in January’s general election, says Tsipras.
Now you must “decide with your vote whether we made the right choice”Now you must “decide with your vote whether we made the right choice”
6.44pm BST18:44 6.44pm BST
18:44
Alexis Tsipras announces his resignationAlexis Tsipras announces his resignation
Tsipras confirms that he will step down as prime minister, after almost eight months in office, to trigger elections.Tsipras confirms that he will step down as prime minister, after almost eight months in office, to trigger elections.
"Shortly I am going to submit my resignation and the resignation of my government to the president" #Tsipras"Shortly I am going to submit my resignation and the resignation of my government to the president" #Tsipras
6.43pm BST18:43 6.43pm BST
18:43
I have a moral obligation to place this deal in front of the people, to allow them to judge it, says Tsipras.I have a moral obligation to place this deal in front of the people, to allow them to judge it, says Tsipras.
6.42pm BST18:42 6.42pm BST
18:42
Tsipsas is running through the good points of his bailout deal (this may not take too long!).Tsipsas is running through the good points of his bailout deal (this may not take too long!).
He says Greece resisted pressure to cut pensions and to privatise the country’s electricity supplier.He says Greece resisted pressure to cut pensions and to privatise the country’s electricity supplier.
#Greek PM #Tsipras #live : Firing of public servants is now in the past.#Greek PM #Tsipras #live : Firing of public servants is now in the past.
6.40pm BST18:40 6.40pm BST
18:40
Tsipras is arguing that Greece has taken a decisive step forwards in the crisis, though the three-year €86bn deal he signed up to last month.Tsipras is arguing that Greece has taken a decisive step forwards in the crisis, though the three-year €86bn deal he signed up to last month.
This is like listening to a bad break up. #Tspiras taking his time to get to the pointThis is like listening to a bad break up. #Tspiras taking his time to get to the point
6.39pm BST18:39 6.39pm BST
18:39
#Greek PM #Tsipras #live : we are obliged to comply with this deal but without accepting bad treatment of lower social classes#Greek PM #Tsipras #live : we are obliged to comply with this deal but without accepting bad treatment of lower social classes
6.39pm BST18:39 6.39pm BST
18:39
Tsipras: We got the best deal we couldTsipras: We got the best deal we could
Alexis Tsipras (jacket, no tie as usual) begins by saying that Greece has been through difficult negotiations, but this phase is finally over.Alexis Tsipras (jacket, no tie as usual) begins by saying that Greece has been through difficult negotiations, but this phase is finally over.
He concedes that he did not secure the bailout agreement he wanted, but it was the best available.He concedes that he did not secure the bailout agreement he wanted, but it was the best available.
We will fight to avoid “adverse consequences” of the bailout programme, he pledges.We will fight to avoid “adverse consequences” of the bailout programme, he pledges.
Nothing on new elections yet.....Nothing on new elections yet.....
6.36pm BST18:36 6.36pm BST
18:36
Please do not adjust your sets.....Please do not adjust your sets.....
Tsipras' address to the nation ... first 30" transmitted without sound #GreeceTsipras' address to the nation ... first 30" transmitted without sound #Greece
6.35pm BST18:35
Tsipras addresses the nation
Alexis Tsipras is starting to give his statement now (live feed here, in Greek).
6.25pm BST18:25
EIU: Opposition to bailout deal won't go away
Snap elections will allow Syriza to remove troublesome left-wingers who won’t accept the bailout conditions, but they won’t make the deal much more popular.
As Joan Hoey of the Economist Intelligence Unit explains:
Tsipras is likely to form the next government having removed dissenting Syriza MPs, but he will not be able to eradicate opposition to bailout policies, which is likely to increase as times goes by.
The mind-boggling scope of the reforms in the new agreement, which extend into virtually every area of the economy and polity, exceed anything visited upon even the post-communist states of eastern Europe.
The referendum result of 5 July, in which 61% of voters rejected austerity measures demanded by Greece’s creditors, revealed that there is a large body of opinion that is prepared to countenance a break with the euro. In coming months and years, support for remaining within the euro zone “at all costs” will diminish significantly.”
Updated at 6.30pm BST
6.21pm BST18:21
@antheecarassava In most countries September is back to school in #Greece its back to ballot box.
6.14pm BST18:14
6.12pm BST18:12
No sign of Tsipras yet.
ERT’s web feed has crashed, unfortunately. But happily you can also watch Skai News live, here.
5.53pm BST17:53
I believe Alexis Tsipras’s statement will be carried live on the ERT state broadcaster. If so, you can watch it live here.
5.34pm BST17:34
Snap elections could allow Alexis Tsipras to shore up support for the third Greek bailout, tweets EC president Juncker’s chief of staff, Martin Selmayr:
Swift elections in Greece can be a way to broaden support for ESM stability support programme just signed by PM Tsipras on behalf of Greece.
The opposite is also true, of course....
Updated at 5.34pm BST
5.22pm BST17:22
Journalists are now gathering to watch Alexis Tsipras take the short trip to see president Prokopis Pavlopoulos and submit his resignation, nearly seven months after taking office.
Waiting for @atsipras to head to Presidential palace w @aantzoletos #Greece pic.twitter.com/S3voAEoPMg
5.12pm BST17:12
Reminder: Tsipras should address the nation in a TV address at 8pm local time (6pm UK).
#Greek PM Alexis #Tsipras to officially announce his resignation and elections in one hour. #Greece
4.51pm BST16:51
The European Central Bank has just confirmed that Greece has repaid the €3.4bn of bonds which matured today (using the new bailout loans handed over this morning).
The ECB confirms that all Greek government bonds maturing today and owed to the ECB and Eurosystem NCBs have been repaid by Greece
There was never much risk that Greece would miss the repayment, once its bailout was agreed.
(It means the ECB is now clear to keep providing support to the Greek banking sector, although I can’t see capital controls being lifted before these snap elections.)
Updated at 4.57pm BST
4.36pm BST16:36
My colleague Jon Henley sums up the situation:
The Greek prime minister, Alexis Tsipras, has decided to step down and call snap elections for 20 September, government officials said.
As the debt-crippled country received the first tranche of its new €86bn (£61bn) bailout, Tsipras was set to make the formal announcement later on Thursday, government sources told Reuters.
Once he submits his resignation the prime minister would be replaced by the president of Greece’s supreme court, Vassiliki Thanou-Christophilou – a vocal bailout opponent – who would oversee the elections as the head of a transitional government.
Tsipras won parliamentary backing for the tough bailout programme last week by a comfortable margin despite a large-scale rebellion among members of his ruling leftwing Syriza party, nearly one-third of whose 149 MPs either voted against the deal or abstained. Syriza governs in a coalition with the rightwing, anti-austerity party Independent Greeks (Anel).
The revolt by hardliners angry at what they view 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.
He has now decided to skip that step, deciding instead to go straight to the country in an attempt to silence rebels and shore up public support for the draconian three-year bailout programme, which entails a radical overhaul of the Greek economy including further tax hikes, spending cuts and major reforms of health, welfare, pensions and taxation....
Here’s Jon’s full story:
Related: Greek bailout: Alexis Tsipras to 'step down and call snap elections'
4.33pm BST16:33
Greek government bonds are suffering from Tsipras’s decision to trigger the country’s fourth election since early 2012.
The yield, or interest rate, on two-year bonds has jumped to 12.1%, from 11.3% last night.
A higher yield shows that the debt is seen as riskier.
4.18pm BST16:18
once elections called, the #greek state grinds to a halt. that includes revenue collection just days shy of income, property tax filings
4.15pm BST16:15
Snap elections will not make it easier for Greece to implement the terms of its new bailout agreement.
According to the bailout provisions, Athens has to present by October a supplementary budget for 2015, a draft budget for 2016 and a 2016-19 medium term fiscal strategy, (via Teneo Intelligence;s latest note on Greece).
That will include tackling some tough structural reforms, including to pensions and income tax. It’s hard to see how that can happen during an election campaign.
And Greece needs to meet these conditions so that creditors can then consider the issue of debt relief.
4.12pm BST16:12
Greek PM Tsipras informing party leaders of his decision to head for snap elections. Ballot date likely to be Sept 20, sources say #Greece
4.12pm BST16:12
A government official says Alexis Tsipras is planning to hand in his resignation to Greece’s president later today, Reuters reports.
4.07pm BST16:07
There’s also a rumour that the rebellious left-wing of Tsipras’s party are preparing to break away and form their own group.
Left Platform (SYRIZA's radicals) are waiting for #Tsipras' announcemenents to announce new party - state TV
3.57pm BST15:57
A government official has just confirmed to Reuters that Tsipras will propose holding elections on September 20th.
3.55pm BST15:55
Greek elections 'to be held on September 20'
Fasten your seatbelts. Mega TV are reporting that Alexis Tsipas has decided to call fresh elections in Greece in four weeks time, on Sunday 20 September.
Updated at 3.55pm BST
3.53pm BST15:53
Alexis Tsipras’s meeting with his top advisors has broken up....
Meeting of top ministers & Syriza officials with Tsipras has just ended. Que sera sera. We should know soon. #Greece
3.49pm BST15:49
Snap elections, sooner or later, are inevitable due to the deep split within the government, tweets Nick Malkoutzis of the Kathimerini newspaper:
Truth is current set-up (SYRIZA divided & reluctant opposition support) not sustainable. Alternatives to snap elex questionable 1/2 #Greece
That's why it always seemed only issue Tsipras had to resolve was if elections would come before/after 1st bailout review 2/2 #Greece
Updated at 3.49pm BST
3.44pm BST15:44
Greek media are still confident that Tsipras will address the nation at 8pm local time (6pm BST), so just over two hours to wait.....
#Tsipras expected to make statement at 20.00, say Gr media - in time for TV news bulletins
3.36pm BST15:36
@Hugodixon this lady here.. pic.twitter.com/4Vu4jZSZIE
3.35pm BST15:35
Having checked with Greek media friends, it appears that Alexis Tsipras would have to formally resign as prime minister if he chooses to trigger snap elections.
A caretaker government would then be installed until the polls had been held.
And the front-runner to lead that administration, according to Greek Reporter, is the president of the Supreme Court, Vassiliki Thanou-Christophilou.
More here: The Judge Who Could be Greece’s First Female Prime Minister.
Vassiliki Thanou, 65 yrs old, President of the Supreme Court of Greece, tomorrows Prime Minister of GR till elections pic.twitter.com/xdXHxVGizU
Updated at 3.40pm BST
3.15pm BST15:15
Who might win a snap election?
Well, Syriza has held a solid lead in the opinion polls all year, even though it hasn’t delivered on the promises made before January’s election.
So on paper, Alexis Tsipras has a good chance of being returned as prime minister, perhaps in a new coalition.
Some recent #Greece opinion polls. Still giving Syriza a large lead albeit slipping slightly https://t.co/c721I0fQhJ pic.twitter.com/Otm3FIuT88
However, these polls were taken before Greece finally secured its third bailout (the first loan tranche was paid this very morning).
The Greek public are still digesting the events of a dramatic year, and coming to terms with the tax rises, spending reforms and economic reforms which Tsipras’s government agreed to.
The recent split in Syriza between the rebels of the Left Platform and the rest of the party also complicates the picture.
Previous #Greece opinion polls totally worthless for reaching conclusions on what may happn in poss Sept elections. Evrything's differnt now
Updated at 3.16pm BST
2.56pm BST14:56
Greece’s sovereign debt is falling in value, as investors face up to the prospect of elections next month.
This has pushed the yield on two-year Greek bonds up to 11.6%, from 11.3% last night (a higher yield, or interest rate, means the debt is seen as riskier)
Updated at 4.05pm BST
2.33pm BST14:33
Syriza rebellion likely to force snap elections
So, why is Greece’s prime minister apparently planning to call snap elections, just days after securing the country’s third bailout?
It all boils down to political mathematics, and the rebellion that has built up in Alexis Tsipras’s Syriza party over the economic reforms demanded by creditors.
Last week, more than 40 hardline Syriza MPs rebelled and refused to back the bailout plan. That deprived Tsipras of his majority (his coalition hold 162 seats out of 300).
Having won power in January on an anti-austerity platform, members of Syriza’s Left Platform argue that the bailout measures are unacceptable.
Analysts had been expecting Alexis Tsipras to call a confidence vote over the Greek bailout deal But this idea appears to have been shelved, in favour of a straight trip to the polls.
Reuters explains:
Tsipras - who remains popular in Greece and would be widely expected to return to power if elections were held now - was huddling with senior advisers on Thursday afternoon to decide his next move, a government official said.
“Everything is possible,” the official told reporters whenasked whether Tsipras could announce elections later in the day.
ERT state television said the timing of snap elections would be announced later on Thursday.
And that announcement could come at 8pm Greek time, or 6pm in the UK.
2.11pm BST14:11
Alexis Tsipras gave the snappers a cheerful grin when he left his residence, Maximis Mansion, this afternoon, but didn’t reveal whether he’s planning to send Greece back to the polling stations soon:
1.58pm BST13:58
Speculation about snap elections is continuing to weigh on the Greek stock market.
The main Athens exchange has shed 3.2% today, led by financial stocks.
Alpha Bank tumbled 14%, followed by Attica Bank (-11%), and Piraeus (-10%), as investors react to this latest instability.
1.25pm BST13:25
State broadcaster ERT is now reporting that Alexis Tsipras will announce a snap election tonight, after consulting his senior advisers.
That meeting has just started, according to the Wall Street Journal’s Nektaria Stamouli.
#Greece on #election mode again, meeting between @atsipras and top aides started at parliament
1.18pm BST13:18
September 20th appears to be the most likely date for Greece to hold fresh elections:
Tonight #Tsipras is expected to resign, transitional gov't to take over, with probable date of elections Sept. 20. #Greece
1.17pm BST13:17
Tsipras 'to decide on early elections' today
Here’s Reuters’ latest take on the situation in Greece:
Greek Prime Minister Alexis Tsipras is due to meet senior advisers shortly to discuss whether to call early elections to quell a rebellion in his leftist Syriza party, a government official said on Thursday.
Speculation of snap polls in September has grown in recent days as senior aides including Energy Minister Panos Skourletis openly call for a return to the ballot box.
1.09pm BST13:09
Here we go again?
State TV ERT reports Tsipras spoke to Greek President Pavlopoulos last night. Content not known but speculation is about snap polls #Greece
12.52pm BST12:52
The rumour mill is gathering pace, with reports that Greece’s prime minister will go on television tonight and trigger snap elections.
Greek media reporting PM Alexis #Tsipras will give a TV address tonight, possibly announcing his resignation & elections in Septemb. #Greece
Updated at 1.00pm BST
12.50pm BST12:50
Reuters is now reporting that Alexis Tsipras will meet with senior advisors today to discuss whether to plump for early elections:
Greek snap election talk is unsurprising as Greece has now received aid, opposition that Syriza relied on will return to playing role of opp
12.29pm BST12:29
Wall Street is bracing for losses when trading begins in two hours time:
It's all looking a bit ugly - Dow $DJIA currently forecast to start 180 points lower than Weds close, at 17169. Low for 2015 is 17,038.
12.13pm BST12:13
The French and German stock markets have also pushed lower through the morning, and are both down over 1% as traders head for lunch.
The latest slide on the Chinese stock market (down 3% today), and fresh tensions in emerging markets (hello Kazakhstan!) overshadowed any relief over Greece.
Jasper Lawler of CMC Markets explains:
Markets priced in a short term resolution to Greece’s debt problems in the first few days after the deal was announced.
It wasn’t a given that Greece would make its payment to the ECB today but doing so wasn’t enough to offset emerging market concerns.
11.25am BST11:25
The speculation that Greece could call snap general elections soon is pushing shares lower in Athens:
Market not pleased with talk of early elections. Stocks off more than 3% #Greece
11.19am BST11:19
I’m afraid Kazakhstan rarely gets much attention in this liveblog. But no longer!
The Kazakhstan currency, the tenge (10 points if you knew that already), has plunged by a jaw-dropping 23% today after the country abandoned efforts to keep its value pegged.
1-year chart of the Kazakhstani tenge to the dollar. Definitely the chart of the week. http://t.co/RfxaM1QqOP pic.twitter.com/iC7CILF8n7
The move appears to be triggered by last week’s devaluation of the Chinese yuan by Beijing.
China is a major trading partner for Kazakhstan, as is Russia, where the rouble has been hit by falling oil prices and the strengthening dollar. A weaker tenge should make Kazakhstan more competitive, and also more vulnerable to inflation....
10.56am BST10:56
Euclid Tsakalotos also told MPs that a fresh Greek general election (if it happens) would not cause panic, due to the stability provided by the new bailout agreement.
FinMin Tsakalotos: Elections coming but situation better than 2012 #Greece pic.twitter.com/XWmmUwPvOI
As covered at 8.30am, prime minister Tsipras appears to be close to calling a snap election. Nothing official yet, though.
10.46am BST10:46
Back to Greece, where finance minister Euclid Tsakalotos has told MPs that the banking sector is on the road to recovery:
Enikos has the story:
Tsakalotos urged Greeks to trust the banking system and return their money to the banks.
He referred to the government’s mistakes but explained that mistakes are always made during hard negotiations.
However, Tsakalotos said, there is a legacy and “I think it helped European social democracy to realize that some things need to change in order for the eurozone to be saved.”
Tsakalotos urges Greeks to bring back their money to the banks - http://t.co/EaArg7LM6C
10.25am BST10:25
Fed minutes give markets the jitters
Confusion over the prospects of a US interest rate rise are also hitting stock markets today.
The minutes of the Federal Reserve’s most recent meeting, published last night, have muddied the waters, helping to send shares down in Asia and Europe.
According to IG, the ‘implied probability’ of a rate hike in September dropped to 38% overnight, from 48% on Wednesday, after Fed policymakers expressed concerns over weak inflation and the threat of a China slowdown.
Some analysts think a rate hike next month is now extremely unlikely:
My guess is that the odds of a Sept rate hike are fast approaching 0%.
But others fear the Fed will soon raise borrowing costs for the first time since the financial crisis began, despite signs of weakness in the global economy:
Shane Oliver, head of investment and chief economist at AMP Capital, told clients:
“The Fed appears to be heading toward a rate hike and this against the backdrop of deflationary forces globally is creating intense uncertainty.
“Investors have now grown used to near zero interest rates for more than 6 years in the U.S. and there is naturally fear that raising them will threaten the still fragile U.S. and global economies.”
9.35am BST09:35
There’s no relief at the Athens stock exchange this morning.
The main index has fallen by 2.5% in early trading, with Greek banks leading the rout, despite the news that Greece will receive €13bn of bailout funds today.
9.11am BST09:11
City analysts fear that the Footsie could take more of a kicking this autumn, given the speed of its recent declines:
FTSE 100 continues its push below the 6 year trend - next big level 2015 lows at 6300. Chart: pic.twitter.com/Ol2hFJKgnV
8.58am BST08:58
FTSE 100 sinks into correction territory
Britain’s blue-chip index of leading shares has fallen into correction territory as fears over the global economy hit European stock markets again.
The FTSE 100 index hit a new seven-month low of 6359 points this morning, from 6403 last night.
That’s more than 10% from its record closing high of 7,104 points set in April, meaning the Footsie is now experiencing a correction (a 20% fall would equal a bear market).
Tony Cross, market analyst at Trustnet Direct, tells me:
Having dabbled with the level yesterday, there can be no doubting that the FTSE-100 is now squarely in corrective territory, having dropped by more than 10% since the April highs.
Stock markets have been dropping for several weeks now, as investors become increasingly edgy that the world economy was entering a stickier patch.
The state of the Chinese economy is now centre-stage. And the news that the Shanghai stock market had tumbled more than 3% today has hit European markets.
Conner Campbell of SpreadEX explains:
For such a long time Greece was the market moving force, be that positive or negative; now, despite a deal being signed, sealed and delivered, something that has happened against pretty formidable odds, investors have been infected with a fear over China that is outweighing any other (non-interest rate related) news.
Another tumble by the Shanghai Composite merely reinforced the idea that the Chinese government is struggling to provide a tourniquet for its headline index, and caused the markets to open to more widespread losses after the bell.
It’s not a major selloff, but all the European stock markets are in the red right now:
Updated at 8.59am BST
8.35am BST08:35
#Greece gives order to repay Eu3.2b in bonds to ECB after the bailout gets signed off by creditors yesterday
8.30am BST08:30
With Greece’s bailout now secured, attention has shifted to whether the government will call elections soon or try to hang on.
The Kathimerini newspaper reckons that snap polls are now “certain”, given the rebellion among prime minister Alexis Tsipras’s party over the deal.
It says today:
Kathimerini understands that one set of advisers is urging the prime minister to move swiftly and call a ballot for September 20 or 27 at the latest so the government can overcome the internal rift that has opened up within SYRIZA.
The other group has advised Tsipras not to consider elections before October 11 so the government has a chance to implement its new bailout agreement with lenders, build trust with them and perhaps clear the adjustment program’s first review.
“It is clear there are issues we have to deal with. We do not deny that,” said government spokeswoman Olga Gerovasil.
8.29am BST08:29
ESM agrees to 'immediately' send €13bn to Greece
Things are moving fast this morning.
Europe’s main bailout vehicle, the ESM, has now approved the first tranche of financial assistance for Greece, totalling €26bn.
It also announced that it will “immediately disburse” €13bn to Greece.
That leaves €10bn to help the banking sector, and €3bn to be doled out this autumn.
The money is arriving just in time, as ESM Managing Director Klaus Regling explains:
“Today’s ESM disbursement will allow Greece to meet its urgent financial obligations to the International Monetary Fund and the European Central Bank, and other budgetary needs. The second sub-tranche of €10 billion will contribute to stabilising the banking sector, whose situation deteriorated sharply after the imposition of capital controls in June.
ESM Board of Directors approves first tranche (€26bn) of third Greek bailout. €13bn disbursed immediately. http://t.co/VbsBmS0ce4 #Greece
8.13am BST08:13
Greece "repays European Central Bank"
Greece has just triggered the procedure to repay the €3.4bn bond held by the European Central Bank, which matures today.
That’s according to the AFP newswire, and Reuters.
#Greece repays €3.4bn to the #ECB, AFP reports citing informed source
Updated at 8.13am BST
8.05am BST08:05
Introduction: Greece gets bailout cash, to repay ECB
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
It’s been a long, bumpy and nerve-racking journey. And the destination isn’t to everyone’s liking. But today, Greece will finally receive an injection of bailout funds for the first time in around a year.
Athens should take delivery of €13bn in fresh loans this morning, as the country’s third, three-year bailout programme gets underway. Another €10bn will be set aside in Luxembourg to help fund the repair of Greece’s banking sector.
As we covered in Wednesday’s liveblog, eurozone authorities signed this off last night, after the Dutch and German parliaments approved the deal.
The arrival of the bailout funds will remove the danger that Greece might default to its creditors. Later today, it must repay €3.2bn to the European Central Bank, to cover a maturing loan.
And after months of negotiations, ESM signs off first 26bn euros of Greece's new bailout (disbursing 13bn immediately so it can pay the ECB)
Most of the rest of the bailout cash will also be rapidly spent servicing debts including the €7bn bridge loan agreed last month, to cover Greece’s other loan repayments to its creditors.
Yes, it’s all terribly circular, and doesn’t leave Greece with very much new funding to address its economic plight. But repaying the ECB is another step towards the day when capital controls are lifted.
What else is coming up today?
China remains a major worry for the financial markets, after recent turbulence.
The Shanghai stock market is down another 2% in late trading, despite the government’s efforts to prop up prices.
Hang on, it’s now 3%.....
*SHANGHAI COMPOSITE INDEX FALLS 3.04%
And investors are also reassessing the chances of the Federal Reserve raising interest rates in September.
Last night the Fed released the minutes of its latest meeting, which were more dovish than expected. Policymakers pointed to the dangers posed by the stronger dollar, and a China slowdown, as reasons for caution.
With emerging market currencies already at their lowest levels for years, the Fed’s next step will have global ramifications.
We’ll be tracking all the main events through the day....