Tsipras Threatens Snap Elections As Syriza Rebellion Threatens To Derail Bailout

Tyler Durden's picture

On Tuesday we documented the rapid collapse of the Greek economy. According to data presented at an extraordinary meeting of the Hellenic Confederation of Commerce and Entrepreneurship, retail sales have fallen 70%, while the The Athens Medical Association recently warned that 7,500 doctors have left Greece since 2010. 

To be sure, assigning blame for the economic malaise is difficult as it’s still largely unclear whether internal structural problems or externally imposed belt tightening deserve the lion’s share of the blame, but there certainly does seem to be a growing consensus among impartial observers that creditors’ insistence on the implementation of still more austerity in the middle of what amounts to a depression may be a fool’s errand - especially with capital controls serving to constrain economic activity. 

It is against this backdrop that Greek PM Alexis Tsipras will attempt to pass a third set of prior actions through parliament - this will be the first such vote to take place with representatives of the "Quadriga" on the ground in Athens. As we noted on Tuesday, "if creditors aren't satisfied with the progress by August 18 (i.e. if for any reason Tsipras doesn’t manage to get the third set of bailout prerequisites by lawmakers), then paying the ECB on August 20 won't be possible and then it's either tap the remainder of the funds in the EFSM (which would require still more discussions with the UK and other decidedly unwilling non-euro states) or risk losing ELA which would trigger the complete collapse of not only the economy but the banking sector and then, in short order, the government. And through it all, the PM is attempting to beat back a Syriza rebellion (which will only be exacerbated by the upcoming vote on the third set of measures) while convincing the opposition that he's not secretly backing the very same Syriza rebels in their attempts to forcibly take the country back to the drachma." 

On Wednesday, Tsipras spoke out about the new bailout "deal", debt re-profiling, the referendum, and party politics in an interview with Sto Kokkino radio station. 

As Bloomberg reports, the Prime Minister "says that his mandate was to stop destruction of Greece [and that] things have changed" for the country and for Syriza. "The Greek people voted 'no' to a bad deal, they did not vote for an exit from the euro. Now some people are trying to manipulate the results," he continued.

Tsipras went on to accuse creditors of not negotiating in good faith, noting that the "quartet" of institutions wasn’t independent. As for the referendum call, Tsipras says he "had no other choice" and that the plebiscite was "high risk." As for abandoning the Greek "no" vote, Tsipras appears to have laid the blame at the foot of EU officials, saying it was "creditors [who] decided to shut down Greek banks" (the implication being that it was the bank closure and attendant economic pain which forced his hand in Brussels). Finally, the PM insists on playing up debt relief as something that was extracted from creditors during bailout talks (as opposed to something that was agreed to later once even Germany realized that without some manner of re-profiling, Greece’s situation was utterly hopeless). "We got a commitment for debt relief, which will take place after the first review of the program, in November," the PM said. 

Here are a few more notable quotes from the interview:

But for many Syriza lawmakers, the time for rhetoric has long since passed and indeed, it now appears that the party will not wait until after the third bailout is formally in place to call a party conference. Here’s Kathimerini:

SYRIZA’s central committee is due to hold an emergency meeting Thursday in an attempt to find a way to settle the growing rift within the party over whether the government should agree to a third bailout or not.


The second meeting Tuesday of the political secretariat in two days resulted in a decision to call a gathering of the central committee after several SYRIZA officials belonging to the party’s radical left wing called for the government not to pursue negotiations with Greece’s lenders but to follow an "alternative" path.


Prime Minister Alexis Tsipras spoke at Monday’s meeting of the political secretariat and insisted that the government has no other viable option than to agree a new bailout with the institutions. 


He proposed holding an emergency SYRIZA congress, probably in September, to allow party members to debate the issue.


However, the party’s Left Platform, led by ex-Energy Minister Panayiotis Lafazanis is pushing for the congress to be held now, before a third bailout has been agreed.


The central committee members will have to decide whether they will accept either of these options or whether there should be a ballot of SYRIZA members to decide what should be done.

Meanwhile, creditors are "pleased" with how "cooperative" Greece is being now that they have been thoroughly humiliated and subdued (which recalls what the German Economic Council said on Tuesday about "uncooperative" states). "The teams from the institutions are now already on the ground in Athens since Monday and the talks have now been ongoing for the last couple of days," an EU Commission spokesperson said on Wednesday, adding that Brussels is "satisfied with the smooth and constructive cooperation with the Greek authorities and that should allow us to progress as swiftly as possible."

But as should be abundantly clear from the above, and as we and others have pointed out on quite a few occasions since Alexis Tsipras left Brussels on July 13, there’s something very odd about leaving the implementation of an unpopular bailout program to the political party from which the staunchest opposition emanates.

The alleged plot to seize the country’s currency reserves hatched in secrecy by Lafazanis only serves to reinforce the suspicions not only of creditors, but of the very same opposition lawmakers who helped Tsipras secure the necessary votes to pass the first two sets of prior actions. 

Put simply, there seems to be a very real possibility that the Syriza rebellion will gather enough steam in the coming weeks to materially derail discussions. This is then a race - Tsipras needs to formalize the new program before Lafazanis (and perhaps Varoufakis) foment enough discontent to make a meaningful push to head off implementation.

And with that, we’ll close with the following sound bites from Kathimerini which sum up the situation quite nicely.

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VinceFostersGhost's picture



Double dog dare you bitch.



Haus-Targaryen's picture

Charge V with treason.  You'll see Tsipras' majority disappear quickly.  

N2OJoe's picture

Will you end up doing whatever you wanted in the first place even when the people vote OXI, again?

omniversling's picture

Rock, meet Hard Place.

Excellent viewing here on what led up to the Greek now, and the EuroZone project:


The Trail of the Troika (HD 720p) | A must-see to understand the situation in Greece


The Secret Bank Bailout (HD 1080p) | German TV Award 2013 - YouTube



TNTARG's picture

It's amazing to be amazed of seeing somebody telling things we all know. And yet, we're amazed and the video got an award and nobody seems to care in the end.  

pmbug's picture

"We got a commitment for debt relief, which will take place after the first review of the program, in November," the PM said.


lol.  They will gladly pay us Tuesday for a hamburger today.

p00k1e's picture

Tsipras sure is a good guy. 

WhyWait's picture

I really thought so, right up to the end.  <sigh> I guess I conflated Tsipis with Varoufakis.

I still give Tsipis "well intentioned", for what that's worth, which isn't much.

This is combat, class warfare. To lead the people in a confrontation with the "billionaire class", first one must place one's complete trust in the people, for better or for worse.

Second, one must make one's peace with death.

Tsipras failed on both, admittedly under mind-boggling intense pressure, but still, he failed. He was not ready to die, and he did not trust the Greek people to stand behind him if he called them into combat with the banksters and pulled the trigger on Grexit.  

Maybe he was right that the Greek people weren't ready.  I don't think so. That last poll, 79% opposed to giving in, was pretty dramatic. But then he should have resigned - at the risk of his life - and reopened the political process.

Now he is a captive of the banksters, like so many social democrats before him. And this is how that happens. He imagines he can go on speaking for the Greek people, but he is of no further use to them unless he tells all and resigns.

Here in the US, we face a similar dilemma. Beneath the surface there is a broad consensus among the American people (yes, including the overwhelming majority of the "sheeple") that the system is broken, our country has been stolen, and we need a revolution.  Bernie Sanders is conjuring forth a "political revolution" of the vast majority of the people, calling us together to a battle with the "billionaire class" to take our country back from them.  The people are responding.  No one can lead this revolution who has not placed their complete trust in the people - for beter or for worse - and made their peace with death. Bernie clearly knows and has accepted that.

Running for President as a genuine populist is not a good career move, here or there, but if you make the struggles of the people your life then it has to be worth your life to you.

In the clinch, Tsipis showed he wasn't there, but the Greek people still are.  The show's not over. 

N2OJoe's picture

He's a limp-dicked politician trying to retain his grip on power for a couple more months, nothing more. Word to the wise: never give a politician the benefit of the doubt.

knuppel's picture
knuppel (not verified) Jul 29, 2015 6:51 AM

He could have acted during his entire reign, but he never did, why would he now?

Ted Baker's picture

Please get once and for all Greece out of the Euro

Ghordius's picture

how? against the will of something like three quarters of the electorate? (edit: "voting" against this statement does not make it less true)

Apocalicious's picture

No, they voted overwhelmingly against forced austerity. The populace is simply not economically literate enough to know that fiscal and monetary policy must go hand in hand, which means voting against externally enforced fiscal austerity is a de facto vote for drachma 2.0. Don't be intentionally more obtuse than you are already.

Bemused Observer's picture

Thank you for pointing that out. Too many people say "The Greeks wanted this, they voted for that," etc. But in fact most of them have NO idea what all the "rules" are...even TPTB can't seem to agree on what they are...

The "lawyer-mindset" has everyone picking at minutiae, looking for the "A-HA!"...finding some little factoid they can throw at the other guy to 'prove' this or that.

Here's a factoid for you...The Greek people are a deeply, profoundly unhappy people. Their 'enemies' have them cornered. Some of them are taunting, pushing their advantage...

It doesn't matter WHAT the specific facts are. This is a potentially explosive situation. Angry people are generally not reasonable, nor do they care about what the "facts", as you determine them, actually are.

back to basics's picture


The pollsters who are suggesting 75% of Greeks want to stay in the euro at all cost are the same ones who were predicting a YES win in the referendum. How did that work out?

No matter how the question of the referendum was phrased and no matter how it is spinned today, reality on the ground suggests that Greeks were voting for a YES or a NO to the euro. Merkel said that, Juncker said that, Dijssesbloom said that, the Greek opposition parties said that and certainly the Greek elite owned MSM were repeating that every two minutes. Everyone knew what the vote was about and no one has the right to spin the result to their liking now, least of all the coward Tsipras.

Get a clue FFS, instead of parroting propaganda on here all the time use your brain to come to your own conclusions.....if you have one.

EDIT: apologies for calling you an idiot when when the only thing you really are is a pseudo intellectual.

skistroni's picture

No, my friend, YOU are an idiot. YOU are not living here, therefore YOU cannot understand what we voted for, what we want or what we mean by the referendum decision. Therefore do not jump to assumptions that don't make sense. 

The Europeans said these things (and they were successful in making YOU believe them) because they wanted to exert pressure on the voters. We never voted for a yes/no to the Euro. At least we haven't yet.

back to basics's picture

Yeah, let me guess, you voted YES. You know, because you live there and you understand things better as well as represent the views of 10,000,000 people.


EDIT: your country is in the mess it's in because of schmucks like you

skistroni's picture

Did you vote buddy, or not? I know I didn't because the question was not clear. LOL. 

invisible touch's picture
invisible touch (not verified) skistroni Jul 29, 2015 9:00 AM

shut the fuck up fucking greek, you retreated @ 52 while others up to 67...  europ saved you ass last minute.com at least 3 times, you had the opportunity to make revolution and  take your freedom back, you have let the tzipras team suck dicks and take it all in the ass without any serious contest just like frenchs cunts in 2005....

just because it is not tolerable to live with 60€ per day ???... 6 x30 days = 1800 MOTHER FUCKING EUROS




Ghordius's picture

"The alleged plot to seize the country’s currency reserves hatched in secrecy by Lafazanis only serves to reinforce the suspicions not only of creditors, but of the very same opposition lawmakers who helped Tsipras secure the necessary votes to pass the first two sets of prior actions."

that would have been a classic "corralito", as often seen in South American countries. I'd call it a plan, not a plot

in the same way as I would not call what Varoufakis attempted treason, but simple big data heist, against the basic right of taxpayers to have their personal informations kept confidential, instead of on a data stick in the hands of one man

Ayreos's picture

Who would you rather handle your data, one finance minister, or a spawling european banking megastructure with thousands of employees which use it to play the market like roulette?

What a joke.

WtfBatman's picture

dear Tsipras ... do it ... no? ... pussy!

Maestro Maestro's picture

Tsipras is a traitor to Greece and the entire human race (bankers are not human).




You said to the Greek parliament, 'I know what I did is wrong but the only difference between me and you is that I'm enforcing the agreement that takes from the Greek people and gives to the bankers.'




Your existence is incompatible with the prosperity of the human race.  Just like the bankers' existence isn't, either.


Let's get rid of the whole lot or the bankers and the governments that they control, or together they will enslave or exterminate us.


Don't enlist in the army and torture and murder for the bankers' pleasure, and convert all the cash you don't need to silver and gold.


That's all it takes.

VinceFostersGhost's picture



If my horse was the Greek government.....I'd shoot it.


The word you're looking for here is.....Iceland.

kralizec's picture

Greeks enjoy the butt-hurt I guess...

invisible touch's picture
invisible touch (not verified) kralizec Jul 29, 2015 9:04 AM

they let gov acting - > they deserve what happened there, end of discuss.


close the greek subject, back to something really important,  greece is kabuki about confidence in market, all is under control.


greek been frackeds and dispersed, 4th reich is buying pieces, nothing more to be made for that sefdom nation.


next please.

JustObserving's picture

The military is waiting in the wings to takeover Greece.  If retail sales have fallen 50 to 70%, there will be protests and riots. That will be the excuse for the miltary to take over.

No democracy in Greece for at least a decade or two.  But then Greece had already surrendered its freedoms to the Troika.

Peter Pan's picture

We all need to understand that Greeks invented democracy so they could all talk at the same time.

Unfortunately, the principal of democracy is lofty but totally unsuited to the Greek psyche of today..

The strange spectacle these days is to hear of many people remembering with nostalgia and talking of the days of the Greek dictatorship in the late 60's despite its shortcomings.

skistroni's picture

Fuck, so true. I'm virtually shocked whenever I converse with people in their 70s and over. 

skistroni's picture

The military in Greece is nothing like the 70's anymore. They are just another bunch of state-fed pussies. No hope there, brother. 

WhyWait's picture

That will open a struggle within the ranks of the military, which is after all mostly made up of the sons of Greek workingfolk.  They've already had one bitter civil war and a bitter and detested military dictatorship.  Been there, done that!

And the awareness they've acquired over the past 5 years of how their world works has certainly percolated through the ranks!

Wary Hanger's picture
Wary Hanger (not verified) Jul 29, 2015 6:56 AM

< Oh Snap

< Oh Wait

overmedicatedundersexed's picture

.govs across the world do not solve anything, but are masters of delay..the solutions are plain, but when the solutions are not part of the story (written by those who see pols as thier men -as in this case bankster & EU leadership) they can and do make it worse, much worse, as long as the "story/plan" can be still seen as possible.

the outcome of a rational decision is greece leaves the EU, has it's own currency and defaults on it's debt to EU..& it's own banks..for greek pols life is much less complex when they can always blame the EU, and that works for the EU as long as greece is seen as staying with the story.

Ghordius's picture

your ".govs across the world do not solve anything" is fine, but you do realize that if Greece would do all that, there would still be a Greek state around, wouldn't it?

and where there is a state, there are taxes, military, police, ect. and a budget to square

overmedicatedundersexed's picture

Ghordius is right there will still be a state, pols and  beaurocrats, so you might still have job. my only wish is that .gov remains small and weak, the key is to keep .gov as weak as possible and banks servents to the people..opposite of todays mega international banks and .govs. which you obviously support.

Bill of Rights's picture

More lets vote and pretend lol...hilarious really, but hey Greece is all fixed now gold says so

new game's picture

hmmm, reeks of states rights upsurped by DC. -centralized power for everyones good. can't wait.

localized decsions are miss guided and can't forsee the bigger picture a progressive future holds. s/ 

Atomizer's picture

We have a steering committee to sustainably drive the foreseeable stability off the cliff. 


Peter Pan's picture

In my mind he has still not satisfactorily dealt with the question as to why he held a referendum if he was not going to accept the people's judgement.

Secondly, he is fast turning into another Obama with the initial grand talk turning into a cowardly retreat.

Thirdly, the Greek people knew, or at least will know now that either course will entail great hardship. Therefore, in my view it would be better to die standing and fighting rather than to die on your knees begging.

Tsipras has allowed the crisis to be contained within Greece rather than him turning the tables on the money lenders as someone else did 2000 years ago. Then again as an atheist he is probably not aware of that incident.

falak pema's picture

Not that the guy you refer to 2000 years ago had ANY EFFECT on the course of events when it came to fighting "the money lenders".

In fact the church that Constantine built in HIS NAME, to serve his own Byzantine Empire--and its Roman counterpart--got more and more corrupt as the money lenders bought the services of the Barbarians to protect them from their own people.

That church then became the church of "god wills it" mayhem and inquisitorial debasement before it morphed further into "indulgent" simony on a scale unheard of.

So "read my lips" as that man said 2000 years ago had no real effect on the world's political evolution.

"Read my lips" to the opposite effect, said by Popes in hatred of the Other, changed the course of History in blood and guts Crusading and nation state great games for the ages to come all to serve the Great One.

"Read my lips" now says Baphomet in Detroit and its an hilarious pastafarian riot 'cos it makes those creationist dogmatists squirm in their soggy robes of the burning cross and "hate thy black neighbour" chants.

Even Jesus would disown that time line as it played out! 

NoBillsOfCredit's picture

There are so many half and quarter truths in what you said I down voted you.

falak pema's picture

no problem; half and quarter truths do honour to those who don't speak a whole bag of lies.

More importantly, the past has relevance to the present; especially when we evoke revelatory legend to consider its allegories as dogmatic truth; as history always rhymes.

That's Man's destiny to repeat the same bag of hype in order to achieve Machiavellian advantage; the political end justifying the metaphysical mystical means. 

Peter Pan's picture

Falek, you are overly fixating on my last line and ignoring what preceded it. In the process you sound as if you had an unpleasant experience in your younger days as an altar boy in a particular church.

falak pema's picture

lol never been to churches  as a boy.

I agree that I picked one line in your text.

But then you put it there for a purpose. 

Don't belabour Tipsy's atheism that is not the ISSUE.

What counts in POLITICS is not belief systems. Jefferson and consorts were not violent religionists; quite the contrary; they were free thinkers and in that age "freemasons". 

So, politics is a bigger game than religion. And when politicians start waving the religious flag you can be SURE its to divert attention from the real causality of political plays.

Dictatus Papae vs Kaiseridee...started that great debate in the obscurantist West of the dark ages. 

It led to the Enlightenment. And the Constitution of the USA made religion irrelevant in politics.

So why harp on choir boys and Tsipras's lack of faith in Jesus? 

Nothing to do with politics.


skistroni's picture

There's a strange parallelism here: Tsipras was placed as the SYRIZA leader because being young, good looking and politically "clean" he could attract any female above age 20 (including influential MILFs and GILFs in particular) and thus win the popular vote. BTW if you check photos of previous SYRIZA leaders it's very clear how he got the party from 4% to 40%. He succeeded. Let me spell it out for everyone here at ZH: THIS HAD NOTHING TO DO WITH POLITICS WHATSOEVER. 

Alas, being a Prime minister HAS to do with politics and hence all the problems of Tsipras, and all the problems of the rest of the world who is trying to understand what the fuck Tsipras is doing. 

Where's the parallelism you may wonder. Well, how about the image of JC (tall, slender, white, blonde, angelic) which seems all too conveniently constructed to attract the LADIES who would in turn convince their men to convert. For all we know, if JC was a Palestinian he most probably was dark-skinned, dark-haired, short and fat, which does not change the spirit of his word at all, but would certainly change the followship percentages. 

The difference is that JC made his teachings first, and his earthly image was constructed afterwards as a marketing trick. Tsipras went straight to the marketing campaign, without any essential content. 

Lea's picture

falak pema, you rant would be OK if it made sense.
Stringing words together is not enough to get meaningful sentences. 

falak pema's picture

It will be interesting to see what happens to VAroufakis for having made public his Plan B.

He is now being prosecuted for "treason". 

Will Tsip protect his ex-colleague via parliamentary immunity or will he let the scandal explode to better exploit it media wise?

Bopper09's picture

Funny how people still think that governments in the world have any say in financial matters.  Simply front men to distact the people from who really enslaves them.   That's how spineless people operate, and would never allow their superiority to be endangered with an 'election'

new game's picture

well put, centralized debt power backed by violence, so fucking simple even a fifth grader could understand, oh wait, the majority don't understand, my bad. sorry...