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.
In response to the more than 160,000 migrants arriving this year, and to ease the overcrowding on the islands, the Greek government charters a ferry that registers and transports over 2500 migrants to Greece’s main port near Athens. Most migrants do not want to stay in Greece and head north to Greece’s border with Macedonia with the aim of going through the Balkans toward the more prosperous European nations such as Germany, the Netherlands and the Scandinavian countries. However, Macedonia plans to step up security on the border to block the route.
Greece reaches a preliminary bailout agreement with its European creditors. The terms of the agreement include sales tax increases, reforms to pensions, and making the labor market more flexible. The country will have to open up competition to industries that have long been protected, such as the energy sector. These and other terms of the agreement will have to be passed into law by Wednesday as a first step to receive 85 billion euros in bailout loans.
Goldman faces possible legal action from Greece over complex financial deals in 2001 that many blame for its subsequent debt crisis. Goldman swapped debt issued by Greece in dollars and yen for euros which were priced at a historical exchange rate that made the debt look smaller than it actually was. The swaps reportedly made about 2 per cent of Greece’s debt disappear from its national accounts. Goldman is said to have made as much as $500m from these transaction referred to as “swaps”, but denies these claims. Former swaps designer at Goldman Jabbour, has told the Greek government in a formal letter:
Right historical wrongs as part of [its] plan to reduce Greece’s debt.
Based on publicly available information, he believes the size of the profit Goldman made on the transactions was unreasonable. Scrutiny and analysis of the documents and email exchanges could give Greece grounds to seek compensation and assess if the deals were executed for the sole purpose of concealing the country’s debts.