Prime Minister Tsipras resigns after giving a TV address. Government officials said the aim was to hold an election on Sept. 20, with Tsipras seeking to crush a rebellion in his leftist Syriza party and seal public support for the bailout program, Greece’s third since 2010, that he negotiated.
The popular mandate I received on January 25th has run its course. Now the sovereign people of Greece must weigh in…I will go to the president of the republic shortly to submit my resignation, as well as the resignation of my government. I want to be honest with you. We did not achieve the agreement we expected before the January elections. I feel the deep ethical and political responsibility to put to your judgment all I have done, successes and failures.
Parliament overwhelmingly approves new reforms centered around creditor-demanded debt. These reforms to the judiciary and banking systems were the last ones Greece was obligated to solve before being able to begin talks with creditors on a third bailout agreement. Without the new bailout money worth around $93 billion Greece could wind up financially ruined. Prime Minister Tsipras:
We have chosen a compromise that forces us to implement a program in which we do not believe, and we will implement it because the alternatives are tough. We are summoned today to legislate under a state of emergency.
A Syriza party spokesman says the Greek parliament will give a mandate to government encouraging full negotiations with creditors. The focus will be on a cash for reforms agreement. Prime Minister Tsipras will request support on July 10 to negotiate “prior actions” which refer to measures his party will use to convince creditors of their commitment for an aid deal. When asked if the parliament believed there would be a deal, the spokesman says:
Certainly. Today we are speaking in parliament.