Greek Oppn tries to form govt, but election looms

The opposition has few chances of uniting and forming a government, meaning that after more than five years of a worsening financial crisis, Greece is headed for its fifth national election in six years. Tsipras is widely tipped to win the vote, though if he fails to secure an outright majority he could have to seek a new coalition that could hamper his ability to govern. 

<g data-gr-id="20">Hardline</g> lawmakers in Tsipras’ radical left Syriza party announced on Friday they were splitting from the party and forming their own anti-austerity movement, which becomes the third largest group in parliament. 

Outgoing government officials say the likeliest election date is September 20, just eight months after Tsipras was elected on promises to fight creditors’ demands for spending cuts and tax hikes - terms he later agreed to in order to secure Greece a third bailout and keep it from falling out of the euro. 

It will be the third time this year that Greeks vote, after January elections and a July 5 referendum Tsipras called urging voters to reject reforms that creditors were proposing during the bailout negotiations. 

Greece’s European creditors seemed to take the news, which was widely expected, in stride. 

“The step by Prime Minister Tsipras isn’t surprising” considering he has lost his majority in parliament, said Steffen Seibert, <g data-gr-id="42">spokesman</g> for German Chancellor Angela Merkel. “What’s important is that the bailout program, which the German Parliament and other European parliaments just voted on, is a bailout program that was agreed with the Hellenic republic. It sets the course for the next three years and nothing has changed on that.” 

German finance ministry spokesman Juerg Weissgerber said that if the elections caused delays in the implementation of reforms required in the bailout agreement, “then it would mean that the next payments are delayed too.” 

Jeroen Dijsselbloem, the Dutchman who heads eurozone finance ministers meetings, said he hoped the elections would not slow down Greece’s reforms. 

“There is a very broad majority in the Greek parliament at the moment that supports the (bailout) package and the expectation is that that could even get stronger,” he told reporters. 

In Brussels, European Commission spokeswoman Annika Breidthardt said the EU executive body was confident the bailout program would be adhered to. 

Funds from Greece’s new three-year, 86 billion ($95 billion) bailout are being disbursed in batches following reviews of the country’s progress on implementing reforms. The first installment was released on Thursday so Athens could meet a debt repayment to the European Central Bank, and a first review is expected in October.