Greece debt crisis: PM Alexis Tsipras faces Syriza mutiny after capitulating to demands

As was said just yesterday.

 

Prime Minister Alexis Tsipras returned to face a mutiny within his coalition after he surrendered to European demands for action to qualify for up to 86 billion euros ($127.8 billion) of aid Greece needs to stay in the euro.

With two factions in his government already saying they won’t support the deal, Tsipras met with his closest aides as he tries to stop the revolt from spreading before a vote in parliament on Wednesday. Creditors’ demands include an overhaul of sales tax, a broadening of the tax base and a clampdown on pension costs.

Tsipras will “have to change his administration and clear out hardliners and radicals from his party,” as well as rely on opposition support to pass the necessary measures, said Eurasia Group analysts Mujtaba Rahman and Federico Santi. “But it is a tough call to determine how Tsipras will go about doing this.”

“There’s a vista of division within the party, part of Syriza officials and lawmakers do not accept the tactics followed by our prime minister,” Yanis Balafas, a Syriza lawmaker close to Tsipras, said in an interview. “What matters now is that the worst-case scenario of a default has been averted.”

Discontent brewed as Tsipras arrived back in the Greek capital. Left Platform, a faction within Syriza, and his coalition partners, the Independent Greeks party, both signalled they won’t be able to support the deal. That opposition alone would wipe out Tsipras’s 12-seat majority in parliament, forcing him to rely on opposition votes to carry the day.

“Over the next three years things are going to just get worse,” said Yanis, 23-year-old law student who joined a protest of a few hundred people outside the parliament building at the top of Syntagma Square on Monday evening. He declined to give his last name. “Maybe then people will think again about what kind of society they want to live in.”

After a six-month offensive against German-inspired austerity succeeded only in deepening his country’s economic mess and antagonizing his European counterparts, there was little for Tsipras to tout as evidence of a face-saving compromise following a rancorous summit in Brussels that ran for more than 17 hours.

Full article: Greece debt crisis: PM Alexis Tsipras faces Syriza mutiny after capitulating to demands (The Age)

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