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Tsipras Reportedly Set To Step Down, Call Snap Elections As Early As Today

As Greece struggled to seal the deal on its latest bailout agreement with creditors, it became abundantly clear that embattled PM Alexis Tsipras was going to have a difficult time preserving his coalition government. 

In short, the Syriza defections were mounting with each passing parliamentary vote and Tsipras was forced to rely on opposition lawmakers for support.

Realizing that implementing the bailout would be all but impossible considering the extraordinarily fractious political environment and lacking the support necessary to win a confidence vote, it looks as though Tsipras will call for new elections as early as today now that the country has made a critical payment to the ECB. Here’s The Telegraph:

Hello and welcome to live coverage of Greece's political crisis, where it seems that Alexis Tsipras is on the verge of calling a snap on the same day his country managed to secure its first bail-out cash from international creditors in over a year.

 

Greek state broadcaster ERT is reporting that the embattled prime minister will announce the vote later today. The PM has been meeting with government officials this afternoon and could resign from office having called the vote. September 13 and 20 have been touted as possible dates.

 

The 41-year-old Syriza leader remains the most popular politician in the country, despite presiding over six months of ill-tempered talks with creditors in which he was forced to capitulate when faced with the threat of a euro exit.

 

"Anything is possible" Earlier today, a Greek government official told reporters that "everything is possible," when asked whether Tsipras could announce elections today.

 

According to Greek media, the PM has been holed up with his aides and officials in the Maximos Mansion in Athens deciding on what his next move will be.

Needless to say, political turmoil and the social instability that will invariably accompany it are precisely what Greek stocks, bonds, and banks (not to mention fragile world markets on edge after the yuan devaluation) do not need, and it looks as though someone is getting nervous...

And Greek 2s are not happy as yields spike 56bps

Because everything is fixed:

  • MERKEL SAYS GREEK BAILOUT APPROVAL ENDS 'UNCERTAINTIES'