Greek Prime Minister Alexis Tsipras resigns, calls for snap elections

AFTER securing a third bailout with European creditors, Greece’s Prime Minister Alexis Tspiras has announced he is quitting and called an early election.

FILES - A picture taken on June 27, 2015 shows Greek Prime Minister Alexis Tsipras attending a parliamentary session in Athens. Tsipras announced his resignation and called for early elections in the crisis-hit country on August 20, 2015. AFP PHOTO / ANGELOS TZORTZINIS

GREEK Prime Minister Alexis Tsipras has announced his resignation and called for snap elections, as he went on the offensive to defend the country’s massive bailout after it triggered a rebellion within his own party.

The election is expected to be held on September 20, the Greek news agency ANA said, citing government sources.

“I will shortly meet with the president of the republic and present my resignation and that of my government,” Mr Tsipras said in a live televised address to the nation on Thursday.

“I want to submit to the Greek people everything I have done (since taking office in January) so that they can decide once more.”

The move leaves Greece in the hands of a caretaker government until the vote. Mr Tspiras was elected in January.

Announcement ... Greek Prime Minister Alexis Tsipras (left) presents his resignation to Greek President Prokopis Pavlopoulos on August 20. Picture: AP Photo/Petros Giannakouris

Mr Tsipras’s announcement came after debt-crippled Greece paid a huge debt to the ECB on Thursday, effectively starting its third mammoth bailout, expected to cost as much as 86 billion euros ($131 billion) over the next three years.

It is the latest gamble by the charismatic young premier, who successfully persuaded Greeks to reject tough reforms in a referendum last month, only to adopt them at a eurozone summit a week later.

The European Commission, one of the creditor institutions overseeing the new rescue package, earlier welcomed reports of a snap election in Greece, saying it would politically bolster the just launched bailout, the country’s third in five years.

Shock exit ... Greek Prime Minister Alexis Tsipras has announced he is quitting. Picture: AFP/Louisa Gouliamaki

“Swift elections in Greece can be a way to broaden support for ESM stability support programme just signed by Prime Minister Tsipras on behalf of Greece,” tweeted Martin Selmayr, chief of staff to commission head Jean-Claude Juncker, referring to the EU bailout fund.

The election would be the second in eight months in Greece.

The government on Thursday cleared 3.4 billion euros owed to the European Central Bank, the ECB confirmed, marking an urgently needed truce in a row that saw Greek banks shuttered, the economy battered and nearly saw Greece thrown out of the eurozone.

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.

— Martin Selmayr (@MartinSelmayr) August 20, 2015

Mr Tsipras took the decision to call snap polls after meeting with members of his cabinet and as speculation swirled that he was to step down in a bid to regain office with a stronger hand.

Mr Tsipras suffered an unprecedented setback in parliament on Friday, with 43 of 149 MPs in the governing Syriza party choosing to either oppose or abstain from the latest wave of creditor-demanded austerity.