Greek politics is heading into more turbulence with the split in the ruling Syriza party. Hardline rebels have broken away to form a new anti-austerity party as the country moves towards its fifth general election in six years.
The split is not surprising considering the intense convulsions which Prime Minister Alexis Tsipras’s bailout deal with European creditors have caused. The austerity package was unacceptable to hardliners in a party which had come to power on a promise of fighting austerity. Tsipras succumbed under pressure from creditors and agreed to sign on the dotted line in the absence of an alternative. Several lawmakers in the party rebelled. Tsipras stepped down on Thursday to pave the way for a snap poll and up to 29 dissident MPs in the party decided to form a new party.
The latest development will make the next election more virulent and bitter, and Greeks will once more decide whether their country should continue with loans from the hated creditors or secede from the monetary union to chart their own course. But it will be like a storm and already there is a sense of déjà vu – after all the destruction, there will be peace, the peace which comes from the realization that there is no alternative to going through pain if life is to brought back to the normal.
The breakaway group is known as the Popular Unity party and will be headed by the former energy minister Panagiotis Lafazanis. The party said it would fight the promises of further austerity and far-reaching reform that Tsipras made to Greece’s international lenders to secure a new €86bn bailout package. Lafazanis said the party would offer a realistic alternative to the deal. He said: “A new power is coming to the fore. We want to become a great movement that will sweep the bailouts aside.” His choice of words – realistic alternative – sounds promising. But that’s a promise Greeks are not likely to believe. The sad truth is that there is no alternative.
The weakening of the anti-austerity party is likely to bolster the pro-austerity camp. Tsipras hopes to come back in the next election. Eurozone leaders too see a chance in the early ballot to consolidate Greek reforms rather than viewing it as a disruptive process.
Tsipras is correct in that accepting creditor demands for a radical overhaul of the Greek economy, including major reforms of health, welfare, pensions and taxation, was the only way to ensure Greece remained in the eurozone. But that’s what his rivals, the centre-right New Democracy party, has been telling from the beginning. Tsipras has failed miserably to deliver on his election promises, for which he must be punished. The New Democracy party must be rewarded for their honesty•
Greek politics is heading into more turbulence with the split in the ruling Syriza party. Hardline rebels have broken away to form a new anti-austerity party as the country moves towards its fifth general election in six years.
The split is not surprising considering the intense convulsions which Prime Minister Alexis Tsipras’s bailout deal with European creditors have caused. The austerity package was unacceptable to hardliners in a party which had come to power on a promise of fighting austerity. Tsipras succumbed under pressure from creditors and agreed to sign on the dotted line in the absence of an alternative. Several lawmakers in the party rebelled. Tsipras stepped down on Thursday to pave the way for a snap poll and up to 29 dissident MPs in the party decided to form a new party.
The latest development will make the next election more virulent and bitter, and Greeks will once more decide whether their country should continue with loans from the hated creditors or secede from the monetary union to chart their own course. But it will be like a storm and already there is a sense of déjà vu – after all the destruction, there will be peace, the peace which comes from the realization that there is no alternative to going through pain if life is to brought back to the normal.
The breakaway group is known as the Popular Unity party and will be headed by the former energy minister Panagiotis Lafazanis. The party said it would fight the promises of further austerity and far-reaching reform that Tsipras made to Greece’s international lenders to secure a new €86bn bailout package. Lafazanis said the party would offer a realistic alternative to the deal. He said: “A new power is coming to the fore. We want to become a great movement that will sweep the bailouts aside.” His choice of words – realistic alternative – sounds promising. But that’s a promise Greeks are not likely to believe. The sad truth is that there is no alternative.
The weakening of the anti-austerity party is likely to bolster the pro-austerity camp. Tsipras hopes to come back in the next election. Eurozone leaders too see a chance in the early ballot to consolidate Greek reforms rather than viewing it as a disruptive process.
Tsipras is correct in that accepting creditor demands for a radical overhaul of the Greek economy, including major reforms of health, welfare, pensions and taxation, was the only way to ensure Greece remained in the eurozone. But that’s what his rivals, the centre-right New Democracy party, has been telling from the beginning. Tsipras has failed miserably to deliver on his election promises, for which he must be punished. The New Democracy party must be rewarded for their honesty•
