Greek PM resigns to trigger snap elections - as it happened
Greece will head back to the polling booths as Alexis Tsipras asks for a new mandate to implement the third Greek bailout
- Summary: Syriza leader seeks new mandate
- Tsipras splits with the left
- Opposition leader hits back
- Moody's fears bailout disruption
- Live TV address - highlights start here
- Greek PM resigns
9.26pm BST
That's all for tonight, unless anything amazing happens in the next couple of hours.
Related: Greek bailout: Alexis Tsipras steps down to trigger new elections
After the country's latest rescue - and the onerous terms the young prime minister has agreed to - his popularity ratings will surely have been dented. In a matter of weeks he has lost more than a quarter of his own MPs, radicals who not only feel he has betrayed the cause but will campaign as the only leftists now left to carry the anti-bailout flame.
Few politicians have so reneged on their pre-electoral promises as the Syriza leader, who came to power vowing to "cancel" austerity and all the evils it had visited on Greece. And, yet, paradoxically Tsipras remains more popular than any of his political rivals. His handling of negotiations with international creditors has not elicited the widespread condemnation one might have expected. Most Greeks still regard the tortuous talks as a robust defence of their rights. The fact that the terms attached to the a86bn (61bn) rescue were harder than any to date has ultimately been seen as better than euro exit. And unlike any prime minister to date Tsipras has been credited with internationalising the problem of Greece's unsustainable debt burden. The International Monetary Fund, one of three creditors to Greece and once the country's harshest economic critic, has become the biggest proponent of debt relief as the basis for recovery.....
Related: Greek elections: Alexis Tsipras makes a calculated gamble
9.06pm BST
More drama, this time in New York. The US stock market suffered a late selloff, wiping 2% off the Dow Jones industrial average and the wider S&P 500 index.
That follows big losses in China this morning, and Europe today.
S&P 500 falls 2.1% for worst day since February 2014 http://t.co/0Y96fOt7su pic.twitter.com/7EhIsZz01M
The IG currently forecasting a -65 start for the FTSE100 on Friday at 6303. Low for 2015 is 6298.
9.02pm BST
A late rumour from Greece - Syriza's left-wingers could be planning to split into their own parliamentary grouping.
There are around 40 MPs in the Left Platform, so they would leapfrog Golden Dawn to become the third largest party behind Syriza and New Democracy.
#Greece | Left Platform indicate they may form a parl group. If so, they will be 3rd strongest group, will get 3rd mandate & not Golden Dawn
8.59pm BST
Less than a week ago, the eurogroup was celebrating signing off Greece's third bailout.
Tonight, its president Jeroen Dijsselbloem is urging Greece not to abandon its "commitment" to the currency bloc.
"I recall the broad support in the Greek parliament for the new program and reform package and I hope the elections will lead to even more support in the new Greek parliament."
8.44pm BST
It really has been quite a year (and there's still four months to go!)
Greece's Tsipras resigns, calls snap polls to beat party revolt http://t.co/8RKyBfKc57 pic.twitter.com/GLEuZQW9Tq
8.41pm BST
City economists are already warning that Tsipras's resignation shows it will be very hard to implement Greece's bailout programme.
Jennifer McKeown, senior European economist at Capital Economics, said:
"Given its anti-austerity roots, the remaining Syriza party will still struggle to implement the demanding bailout conditions, especially in the likely event that Greece sinks further into recession.
And major reforms seem unlikely to be passed in the period running up to the election."
8.04pm BST
Under the Greek constitution, if the PM resigns the mandate to form a government is passed to the largest opposition party, for three days.
So Evangelos Meimarakis of New Democracy could spend the weekend trying to form a minority government to replace Tsipras's administration, as he just pledged.
Meimarakis says he'll meet Potami & PASOK leaders, as well as other opposition chiefs in bid to form minority gov't #Greece
Pledge by New Democracy's Meimarakis to try to form minority gov't seems more attempt to rain on Tsipras parade than genuine effort #Greece
7.46pm BST
The head of the largest opposition party, Evangelos Meimarakis of New Democracy, has pledged to "explore all avenues" to avoid snap elections.
ND leader Meimarakis says he will take the mandate @atsipras has handed over and he will try to form a gvt #GreeceElections
#Meimarakis : no one can understand why Mr #Tsipras resigned today.
#Meimarakis : #Tsipras is popular but he is a bit of liar
#Meimarakis : Never before has a PM caused -by himself- 3 electoral processes. #GreeceElections
7.35pm BST
Moody's has warned that Tsipras has put Greece's third bailout programme at risk.
The rating agency fears that Greece could miss out on some of the a86bn loan deal, if it fails to implement the measures agreed with creditors.
"The Greek Prime Minister Tsipras's move to step down and call snap early elections on 20 September could elevate programme implementation concerns and, potentially, puts future official sector disbursements at risk."
7.22pm BST
And here's Tsipras, asking for elections to be held as soon as possible:
Greek PM @atsipras is now submitting his resignation to the President of the Republic Pavlopoulos #GreeceElections pic.twitter.com/sbCxETfc0N
7.19pm BST
Tsipras is meeting with president Pavlopoulis right now - on a rather large sofa:
7.13pm BST
Eurocrisis analysts and journalists are struck by Alexis Tsipras's split from the left-wing side of his own Syriza party:
Express elections forthcoming in #Greece. PM Tsipras throws the gauntlet at the #Leftist Platform, challenging them as #drachme advocates
after years of struggle and opposition to the Troika, that the Greek left will have to start from scratch is really depressing.
Tsipras presenting SYRIZA as best option compared to Left Platform (pro-Grexit) and traditional parties (too soft with creditors). #Greece
If anyone thinks the azone isn't an engine of convergence, just look at Alexis Tsipras. Six months in and he's turned into Francois Hollande
7.06pm BST
And that's it.
6.53pm BST
I am proud of our time in office, says Tsipras, adding that Europe is not the same since Syriza took power in late January.
6.52pm BST
Tsipras is pitching himself in the centre ground between the left-wing elements in his own party who wanted Grexit, and mainstream opposition parties who signed up to previous bailout deals.
#Greek PM #Tsipras : you will judge us, the ones that promoted the drachma pathway and the ones that served the old system
6.51pm BST
This TV address is swiftly turning into a party election broadcast, even though the election hasn't even been called yet.
Tsipras says that voters must decide if his government showed "courage" in its talks with creditors, and whether the bailout deal will allow Greece to recover.
6.49pm BST
I am resigning because I have now exhausted the mandate which the public gave me in January's general election, says Tsipras.
Now you must "decide with your vote whether we made the right choice"
6.44pm BST
Tsipras confirms that he will step down as prime minister, after almost eight months in office, to trigger elections.
"Shortly I am going to submit my resignation and the resignation of my government to the president" #Tsipras
6.43pm BST
I have a moral obligation to place this deal in front of the people, to allow them to judge it, says Tsipras.
6.42pm BST
Tsipsas is running through the good points of his bailout deal (this may not take too long!).
He says Greece resisted pressure to cut pensions and to privatise the country's electricity supplier.
#Greek PM #Tsipras #live : Firing of public servants is now in the past.
6.40pm BST
Tsipras is arguing that Greece has taken a decisive step forwards in the crisis, though the three-year a86bn deal he signed up to last month.
This is like listening to a bad break up. #Tspiras taking his time to get to the point
6.39pm BST
#Greek PM #Tsipras #live : we are obliged to comply with this deal but without accepting bad treatment of lower social classes
6.39pm BST
Alexis Tsipras (jacket, no tie as usual) begins by saying that Greece has been through difficult negotiations, but this phase is finally over.
He concedes that he did not secure the bailout agreement he wanted, but it was the best available.
6.36pm BST
Please do not adjust your sets.....
Tsipras' address to the nation ... first 30" transmitted without sound #Greece
6.35pm BST
Alexis Tsipras is starting to give his statement now (live feed here, in Greek).
6.25pm BST
Snap elections will allow Syriza to remove troublesome left-wingers who won't accept the bailout conditions, but they won't make the deal much more popular.
As Joan Hoey of the Economist Intelligence Unit explains:
Tsipras is likely to form the next government having removed dissenting Syriza MPs, but he will not be able to eradicate opposition to bailout policies, which is likely to increase as times goes by.
The mind-boggling scope of the reforms in the new agreement, which extend into virtually every area of the economy and polity, exceed anything visited upon even the post-communist states of eastern Europe.
6.21pm BST
@antheecarassava In most countries September is back to school in #Greece its back to ballot box.
6.14pm BST
6.12pm BST
No sign of Tsipras yet.
ERT's web feed has crashed, unfortunately. But happily you can also watch Skai News live, here.
5.53pm BST
I believe Alexis Tsipras's statement will be carried live on the ERT state broadcaster. If so, you can watch it live here.
5.34pm BST
Snap elections could allow Alexis Tsipras to shore up support for the third Greek bailout, tweets EC president Juncker's chief of staff, Martin Selmayr:
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.
5.22pm BST
Journalists are now gathering to watch Alexis Tsipras take the short trip to see president Prokopis Pavlopoulos and submit his resignation, nearly seven months after taking office.
Waiting for @atsipras to head to Presidential palace w @aantzoletos #Greece pic.twitter.com/S3voAEoPMg
5.12pm BST
Reminder: Tsipras should address the nation in a TV address at 8pm local time (6pm UK).
#Greek PM Alexis #Tsipras to officially announce his resignation and elections in one hour. #Greece
4.51pm BST
The European Central Bank has just confirmed that Greece has repaid the a3.4bn of bonds which matured today (using the new bailout loans handed over this morning).
The ECB confirms that all Greek government bonds maturing today and owed to the ECB and Eurosystem NCBs have been repaid by Greece
4.36pm BST
My colleague Jon Henley sums up the situation:
The Greek prime minister, Alexis Tsipras, has decided to step down and call snap elections for 20 September, government officials said.
As the debt-crippled country received the first tranche of its new a86bn (61bn) bailout, Tsipras was set to make the formal announcement later on Thursday, government sources told Reuters.
Related: Greek bailout: Alexis Tsipras to 'step down and call snap elections'
4.33pm BST
Greek government bonds are suffering from Tsipras's decision to trigger the country's fourth election since early 2012.
The yield, or interest rate, on two-year bonds has jumped to 12.1%, from 11.3% last night.
4.18pm BST
once elections called, the #greek state grinds to a halt. that includes revenue collection just days shy of income, property tax filings
4.15pm BST
Snap elections will not make it easier for Greece to implement the terms of its new bailout agreement.
According to the bailout provisions, Athens has to present by October a supplementary budget for 2015, a draft budget for 2016 and a 2016-19 medium term fiscal strategy, (via Teneo Intelligence;s latest note on Greece).
4.12pm BST
Greek PM Tsipras informing party leaders of his decision to head for snap elections. Ballot date likely to be Sept 20, sources say #Greece
4.12pm BST
A government official says Alexis Tsipras is planning to hand in his resignation to Greece's president later today, Reuters reports.
4.07pm BST
There's also a rumour that the rebellious left-wing of Tsipras's party are preparing to break away and form their own group.
Left Platform (SYRIZA's radicals) are waiting for #Tsipras' announcemenents to announce new party - state TV
3.57pm BST
A government official has just confirmed to Reuters that Tsipras will propose holding elections on September 20th.
3.55pm BST
Fasten your seatbelts. Mega TV are reporting that Alexis Tsipas has decided to call fresh elections in Greece in four weeks time, on Sunday 20 September.
3.53pm BST
Alexis Tsipras's meeting with his top advisors has broken up....
Meeting of top ministers & Syriza officials with Tsipras has just ended. Que sera sera. We should know soon. #Greece
3.49pm BST
Snap elections, sooner or later, are inevitable due to the deep split within the government, tweets Nick Malkoutzis of the Kathimerini newspaper:
Truth is current set-up (SYRIZA divided & reluctant opposition support) not sustainable. Alternatives to snap elex questionable 1/2 #Greece
That's why it always seemed only issue Tsipras had to resolve was if elections would come before/after 1st bailout review 2/2 #Greece
3.44pm BST
Greek media are still confident that Tsipras will address the nation at 8pm local time (6pm BST), so just over two hours to wait.....
#Tsipras expected to make statement at 20.00, say Gr media - in time for TV news bulletins
3.36pm BST
@Hugodixon this lady here.. pic.twitter.com/4Vu4jZSZIE
3.35pm BST
Having checked with Greek media friends, it appears that Alexis Tsipras would have to formally resign as prime minister if he chooses to trigger snap elections.
A caretaker government would then be installed until the polls had been held.
Vassiliki Thanou, 65 yrs old, President of the Supreme Court of Greece, tomorrows Prime Minister of GR till elections pic.twitter.com/xdXHxVGizU
3.15pm BST
Who might win a snap election?
Well, Syriza has held a solid lead in the opinion polls all year, even though it hasn't delivered on the promises made before January's election.
Some recent #Greece opinion polls. Still giving Syriza a large lead albeit slipping slightly https://t.co/c721I0fQhJ pic.twitter.com/Otm3FIuT88
Previous #Greece opinion polls totally worthless for reaching conclusions on what may happn in poss Sept elections. Evrything's differnt now
2.56pm BST
Greece's sovereign debt is falling in value, as investors face up to the prospect of elections next month.
This has pushed the yield on two-year Greek bonds up to 11.6%, from 11.3% last night (a higher yield, or interest rate, means the debt is seen as riskier)
2.33pm BST
So, why is Greece's prime minister apparently planning to call snap elections, just days after securing the country's third bailout?
It all boils down to political mathematics, and the rebellion that has built up in Alexis Tsipras's Syriza party over the economic reforms demanded by creditors.
Tsipras - who remains popular in Greece and would be widely expected to return to power if elections were held now - was huddling with senior advisers on Thursday afternoon to decide his next move, a government official said.
"Everything is possible," the official told reporters whenasked whether Tsipras could announce elections later in the day.
2.11pm BST
Alexis Tsipras gave the snappers a cheerful grin when he left his residence, Maximis Mansion, this afternoon, but didn't reveal whether he's planning to send Greece back to the polling stations soon:
1.58pm BST
Speculation about snap elections is continuing to weigh on the Greek stock market.
The main Athens exchange has shed 3.2% today, led by financial stocks.
1.25pm BST
State broadcaster ERT is now reporting that Alexis Tsipras will announce a snap election tonight, after consulting his senior advisers.
That meeting has just started, according to the Wall Street Journal's Nektaria Stamouli.
#Greece on #election mode again, meeting between @atsipras and top aides started at parliament
1.18pm BST
September 20th appears to be the most likely date for Greece to hold fresh elections:
Tonight #Tsipras is expected to resign, transitional gov't to take over, with probable date of elections Sept. 20. #Greece
1.17pm BST
Here's Reuters' latest take on the situation in Greece:
Greek Prime Minister Alexis Tsipras is due to meet senior advisers shortly to discuss whether to call early elections to quell a rebellion in his leftist Syriza party, a government official said on Thursday.
Speculation of snap polls in September has grown in recent days as senior aides including Energy Minister Panos Skourletis openly call for a return to the ballot box.
1.09pm BST
Here we go again?
State TV ERT reports Tsipras spoke to Greek President Pavlopoulos last night. Content not known but speculation is about snap polls #Greece
12.52pm BST
The rumour mill is gathering pace, with reports that Greece's prime minister will go on television tonight and trigger snap elections.
Greek media reporting PM Alexis #Tsipras will give a TV address tonight, possibly announcing his resignation & elections in Septemb. #Greece
12.50pm BST
Reuters is now reporting that Alexis Tsipras will meet with senior advisors today to discuss whether to plump for early elections:
Greek snap election talk is unsurprising as Greece has now received aid, opposition that Syriza relied on will return to playing role of opp
12.29pm BST
Wall Street is bracing for losses when trading begins in two hours time:
It's all looking a bit ugly - Dow $DJIA currently forecast to start 180 points lower than Weds close, at 17169. Low for 2015 is 17,038.
12.13pm BST
The French and German stock markets have also pushed lower through the morning, and are both down over 1% as traders head for lunch.
The latest slide on the Chinese stock market (down 3% today), and fresh tensions in emerging markets (hello Kazakhstan!) overshadowed any relief over Greece.
Markets priced in a short term resolution to Greece's debt problems in the first few days after the deal was announced.
It wasn't a given that Greece would make its payment to the ECB today but doing so wasn't enough to offset emerging market concerns.
11.25am BST
The speculation that Greece could call snap general elections soon is pushing shares lower in Athens:
Market not pleased with talk of early elections. Stocks off more than 3% #Greece
11.19am BST
I'm afraid Kazakhstan rarely gets much attention in this liveblog. But no longer!
The Kazakhstan currency, the tenge (10 points if you knew that already), has plunged by a jaw-dropping 23% today after the country abandoned efforts to keep its value pegged.
1-year chart of the Kazakhstani tenge to the dollar. Definitely the chart of the week. http://t.co/RfxaM1QqOP pic.twitter.com/iC7CILF8n7
10.56am BST
Euclid Tsakalotos also told MPs that a fresh Greek general election (if it happens) would not cause panic, due to the stability provided by the new bailout agreement.
FinMin Tsakalotos: Elections coming but situation better than 2012 #Greece pic.twitter.com/XWmmUwPvOI
10.46am BST
Back to Greece, where finance minister Euclid Tsakalotos has told MPs that the banking sector is on the road to recovery:
Tsakalotos urged Greeks to trust the banking system and return their money to the banks.
He referred to the government's mistakes but explained that mistakes are always made during hard negotiations.
Tsakalotos urges Greeks to bring back their money to the banks - http://t.co/EaArg7LM6C
10.25am BST
Confusion over the prospects of a US interest rate rise are also hitting stock markets today.
My guess is that the odds of a Sept rate hike are fast approaching 0%.
"The Fed appears to be heading toward a rate hike and this against the backdrop of deflationary forces globally is creating intense uncertainty.
"Investors have now grown used to near zero interest rates for more than 6 years in the U.S. and there is naturally fear that raising them will threaten the still fragile U.S. and global economies."
9.35am BST
There's no relief at the Athens stock exchange this morning.
The main index has fallen by 2.5% in early trading, with Greek banks leading the rout, despite the news that Greece will receive a13bn of bailout funds today.
9.11am BST
City analysts fear that the Footsie could take more of a kicking this autumn, given the speed of its recent declines:
FTSE 100 continues its push below the 6 year trend - next big level 2015 lows at 6300. Chart: pic.twitter.com/Ol2hFJKgnV
8.58am BST
Britain's blue-chip index of leading shares has fallen into correction territory as fears over the global economy hit European stock markets again.
The FTSE 100 index hit a new seven-month low of 6359 points this morning, from 6403 last night.
Having dabbled with the level yesterday, there can be no doubting that the FTSE-100 is now squarely in corrective territory, having dropped by more than 10% since the April highs.
For such a long time Greece was the market moving force, be that positive or negative; now, despite a deal being signed, sealed and delivered, something that has happened against pretty formidable odds, investors have been infected with a fear over China that is outweighing any other (non-interest rate related) news.
Another tumble by the Shanghai Composite merely reinforced the idea that the Chinese government is struggling to provide a tourniquet for its headline index, and caused the markets to open to more widespread losses after the bell.
8.35am BST
#Greece gives order to repay Eu3.2b in bonds to ECB after the bailout gets signed off by creditors yesterday
8.30am BST
With Greece's bailout now secured, attention has shifted to whether the government will call elections soon or try to hang on.
Kathimerini understands that one set of advisers is urging the prime minister to move swiftly and call a ballot for September 20 or 27 at the latest so the government can overcome the internal rift that has opened up within SYRIZA.
The other group has advised Tsipras not to consider elections before October 11 so the government has a chance to implement its new bailout agreement with lenders, build trust with them and perhaps clear the adjustment program's first review.
8.29am BST
Things are moving fast this morning.
Europe's main bailout vehicle, the ESM, has now approved the first tranche of financial assistance for Greece, totalling a26bn.
"Today's ESM disbursement will allow Greece to meet its urgent financial obligations to the International Monetary Fund and the European Central Bank, and other budgetary needs. The second sub-tranche of a10 billion will contribute to stabilising the banking sector, whose situation deteriorated sharply after the imposition of capital controls in June.
ESM Board of Directors approves first tranche (a26bn) of third Greek bailout. a13bn disbursed immediately. http://t.co/VbsBmS0ce4 #Greece
8.13am BST
Greece has just triggered the procedure to repay the a3.4bn bond held by the European Central Bank, which matures today.
That's according to the AFP newswire, and Reuters.
#Greece repays a3.4bn to the #ECB, AFP reports citing informed source
8.05am BST
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
It's been a long, bumpy and nerve-racking journey. And the destination isn't to everyone's liking. But today, Greece will finally receive an injection of bailout funds for the first time in around a year.
And after months of negotiations, ESM signs off first 26bn euros of Greece's new bailout (disbursing 13bn immediately so it can pay the ECB)
*SHANGHAI COMPOSITE INDEX FALLS 3.04%
Continue reading...