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An Exasperated Tsipras Calls For Syriza Referendum On Bailout Cancellation

Tyler Durden's picture




 

Anyone who thought Greece’s third bailout program was a done deal or that, at the very least, the market would get a few months of respite before having to grapple with daily Grexit headlines again, got a rude awakening late last week when reports of a secret plot (hatched by ex-Energy Minister Panayiotis Lafazanis along with several Left Platform co-conspirators) to storm the Greek mint and seize the country’s currency reserves underscored the deep divisions within Syriza and betrayed the extent to which passing a third set of prior actions and sealing the deal on an ESM program would prove to be anything but simple. 

Just days after Lafazanis’ plan leaked last week, Kathimerini claimed it had transcripts from a conference call between former Finance Minister Yanis Varoufakis and international hedge fund managers during which Varoufakis described yet another secret ploy to return the country to the drachma by way of establishing a parallel payments system set up using surreptitiously obtained tax filer ID numbers. Later, the full audio recording was released. 

At that juncture, the opposition parties which helped PM Alexis Tsipras beat back a Syriza rebellion and pass the first two sets of bailout prior actions through parliament began to ask questions.

Essentially, opposition lawmakers wanted to know whether Tsipras was allowing his party to undermine progress on the bailout just as he was desperately courting MPs from across the aisle in order to win parliamentary approval for the deal’s conditions. 

On Wednesday, in an interview with Sto Kokkino radio, Tsipras addressed friction within the party and suggested that if he lost his majority in parliament he would call for snap elections.

Today, some 200 Syriza members met at an Athens movie theatre in an effort to figure out next steps for the divided party. Essentially, the Left Platform still wants to resist the third bailout while Tsipras simply wants to avoid party politics altogether until the new program is in place at which point he’ll 'deal' with Syriza’s far-left rabble-rousers. 

Here’s Reuters summarizing the above:

The hardline Left Platform faction is demanding that Syriza abandon talks with lenders immediately and hold an ordinary party congress to determine the party's course. A regular congress would favor the far-left, with the same members who attended two years ago returning to vote on Syriza's future.

 

Tsipras is believed to favor an emergency congress instead, which would enable him to bring in new Syriza members and capitalize on the wider public support he has secured over the past two years, making it easier to defeat the far-left camp.

 

A less likely course would be for the central committee to opt for a referendum, which would put an as yet undetermined question about party strategy to grassroots members for a vote.

 

In a radio interview on Wednesday, Tsipras said he could be forced to call an early general election if he no longer had a parliamentary majority, and suggested an emergency party congress could be held in early September.

 

That would potentially allow Greece to wrap up negotiations with lenders on a bailout package, which Athens hopes to have sealed before a major debt payment falls due on August 20, and secure initial funding before a vote.

 

"Our priority is the (bailout) deal," Gerovasili said. "After this we can deal with party issues."

Speaking to the central party committee on Wednesday Tsipras essentially said that 'victory' wasn’t an option in negotiations with creditors - it was either "compromise or default", he said. The PM also sounded the now familiar challenge to "anyone who thinks they can do better," daring any aspiring usurpers to "speak out", before insisting that the Greek people’s "no" referendum vote was not a "yes" vote to a new drachma.

There was no word on plans to introduce cheese as an alternative currency. 

Ultimately, Tsipras made it clear that the current situation - wherein he must depend on opposition lawmakers to pass legislation - simply isn’t tenable which means that "opposing voices must stop".

Unfortunately, he continued, "there are no magic alternatives” and the question now is whether "Syriza can implement the deal."

Note that his is a question we’ve been asking for sometime. Just yesterday we reiterated this concern, arguing that "there’s something very odd about leaving the implementation of an unpopular bailout program to the political party from which the staunchest opposition emanates." To solve this problem, Tsipras has proposed an internal party ballot on Sunday if the opposition is serious in their contention that he should not have signed a deal in Brussels on July 12.

Here’s Kathimerini (Google translated):

Performing extraordinary congress in September to answer how will the government and SYRIZA after the rift inside the recommended Prime Minister Alexis Tsipras in the CC of the party.

 

If however, the intraparty opposition insisted request for decision directly before the completion of the agreement for the new program and with the obvious intention to cancel it, Mr. Tsipras proposed a referendum among party members the next Sunday.

 

The prime minister threw the gauntlet to those who deny the call by sending them to come forward and say it openly today. After pointing out that "there was no alternative and the best compromise we accepted" he invited whoever believes could bring better deal, go ahead and tell her.

 

"If anyone thinks that another government, another Prime Minister would have done something better to say by this step. If someone believes that SYRIZA left the people to say. If someone believes that SYRIZA should abandon the government to say so. If someone believes that the agreement we reached is the worst of the three memoranda to explain with arguments."

The significance of Tsipras' call for a party referendum shouldn't be overlooked.

In fact - and at the risk of overstating the case - were Syriza to vote on whether or not Greece should follow through on the agreement with creditors, the market could be in for an event that is far more dramatic and important than the original referendum.

While, as Reuters notes, the question that would ultimately be posed to Syriza party members in any potential vote is "as yet undetermined," framing the referendum as a simple chioce between canceling the agreement with creditors or proceeding with program implementation could set up a market moving event with the potential to send everyone - Greece, the IMF, the ECB, and the EU Commission - right back to the drawing board, and plunging the country into a fresh political, social, and economic crisis. 

Stay tuned.

 

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Thu, 07/30/2015 - 07:56 | 6370383 VinceFostersGhost
VinceFostersGhost's picture

 

 

Someday this war is going to end....

 

But....not today.

Thu, 07/30/2015 - 08:01 | 6370394 Haus-Targaryen
Haus-Targaryen's picture

This play book was used on the Irish in 2010.  Keep getting various groups to vote until the EU gets the result it wants, then quit calling votes.  

Evil fuckers, those in Brussels.   

Thu, 07/30/2015 - 08:08 | 6370412 Squid-puppets a...
Squid-puppets a-go-go's picture

the gutless fuck.

stop delaying the inevitable with your pretence of caring about democracy and the ppls whim. you are a banksters whore, tsipiras

Thu, 07/30/2015 - 08:13 | 6370425 Occident Mortal
Occident Mortal's picture

Choose your poison...

 

1). Iceland GDP

2007.....$17.1bn

2008.....$21.45bn

2009.....$17.6bn

2010.....$12.82bn

2011.....$13.26bn

2012.....$14.69bn

2013.....$14.23bn

2014.....$15.39bn

2015.....$17.07bn

 

8 years to recover to 2007 levels, with max GDP draw down of 25% from 2007 levels. Iceland has enjoyed 5 years of solid growth, after 3 years of post crisis pain.

 

 

2). Greece GDP

2008.....$318.69bn

2009.....$354.62bn

2010.....$329.86bn

2011.....$299.62bn

2012.....$288.79n

2013.....$249.5bn

2014.....$242.23bn

2015.....$237.6bn

Just a never ending slide into the abyss. Still no sign of growth at all. So do you 1). do an Iceland, break the banks and save the people OR do you 2). do a Greece, save the banks and break the people? The evidence is clear for all to see.
Thu, 07/30/2015 - 08:18 | 6370439 Headbanger
Headbanger's picture

WTF?    Anybody know if Greece is verboten to have a parallel currency under the latest pact with the Quadra-Satan?

Thu, 07/30/2015 - 08:29 | 6370465 Occident Mortal
Occident Mortal's picture

Why are they even still playing by such rules?

 

Can you imagine the USA obeying international treaties if GDP was down by 40%?

Thu, 07/30/2015 - 09:08 | 6370553 Ghordius
Ghordius's picture

"Can you imagine the USA obeying international treaties..."

no. of course not. it is indeed difficult to imagine the USA obeying anything, or respecting international treaties if it finds there is a reason not to

but the US of A is special. for example by the simple fact that it spends half of what is spent on the whole world for armaments

perhaps what's missing here is the understanding of what an international treaty is. perhaps the easiest way to explain is that it is an agreed law that is approved in two or more countries

and laws can be changed by the same lawmakers that make them, so treaties can be rescinded, and often are

Haus wrote: "This play book was used on the Irish in 2010. Keep getting various groups to vote until the EU gets the result it wants, then quit calling votes."

it still needed Irish lawmakers to propose that referendum, cash in a "no", redrafting it - something that is seldom mentioned - and getting a "yes"

this might happen to Tsipras, with the next referendum he might propose. but I would not make a comparison, the Irish referenda are actually a different breed from what we recently saw in Greece

"Evil fuckers, those in Brussels."

interestingly, Wolfgang Schäuble, the German FinMin, is saying something more diplomatic then that, but yet similar: he is accusing the European Commission of being too political, lately, and is proposing to curtail it's powers. His main argument, so far, is that the "keeper of the treaties" should not be a political actor, too

in short, he is proposing to strip away from the EC the core oversight powers, among them any power to "enforce" national budgets

how does this fit to the opinions some have here about what the EU is or is not?

Thu, 07/30/2015 - 09:20 | 6370622 Haus-Targaryen
Haus-Targaryen's picture

I think Schäuble has jumped ship and will be running interference for the foreseeable future.  

 

Thu, 07/30/2015 - 09:26 | 6370650 Publicus
Publicus's picture

Need a referendum on whether to hang them traitors or not.

Thu, 07/30/2015 - 09:25 | 6370651 Ghordius
Ghordius's picture

and why do you think so? I find his point very consistent, particularly on how european conservatives look at all things beginning with "eu-"

it's the left and the US and all the agit-prop that keep treating our clubs as something that has to resemble the UK or the US

those clubs are to serve the sovereign members, not the other way around. I think a point I have made very often, here

Thu, 07/30/2015 - 09:29 | 6370669 Antifaschistische
Antifaschistische's picture

all this is so confusing...

A socialist, who is really a big Union Boss..

...is actually frustrated because he prefers dictatorial power (hey, just like POTUS)

...is opposed to free thinking in  his own party 

...but calls for a demcratic solution

...in an attempt to crush democracy and monopolize power

 

Thu, 07/30/2015 - 08:35 | 6370478 DogOfSinope
DogOfSinope's picture

Greece must not be allowed out! Creditor are not that much concerned about the sovereign debt - TARGET2 is why they are scared shittless:
http://www.talkmarkets.com/content/financial/europes-greatest-cover-up-c...

Tylers should repost the above link.

Thu, 07/30/2015 - 08:20 | 6370440 negative rates
negative rates's picture

I say never let a good crisis go to waste.

Thu, 07/30/2015 - 08:33 | 6370474 Shaten
Shaten's picture

the difference being Iceland isn't full of crooks like greece.

Everything in Greece is a payoff or a bribe. Even the citizens admit no one respects a successful person cause they know the bribed, cheated, lied to get there. Greece has to fix the dishonesty in their country first before they can ever hope to recover. The first step in this would be to default and keep the Euro so the budgets have to be real. The second would be to slash taxes in half while forcing the tax collectors to do thier job. (Most figures say Greece is missing half of it's tax revenue due to people cheating the system). Until these matters are resolved Greece wil be in a continous state of crissis.

Thu, 07/30/2015 - 08:09 | 6370415 Seasmoke
Seasmoke's picture

Yeah whatever happened to Ireland. Are they still even a country ??

Thu, 07/30/2015 - 08:41 | 6370432 r101958
r101958's picture

Another exercise in voting? -will this one matter? IMO, just another referendum where the results will be discarded-again. A farce.

Thu, 07/30/2015 - 08:18 | 6370438 Dollarmedes
Dollarmedes's picture

I'm guessing that Tsipras needs to compel the reluctant members into compliance. A referendum only needs 50% plus one to succeed, but Tsipras may need 60% or more to overcome a procedural hurdle (like the US Senate filibuster). This vote is an attempt to guilt them into submission through majority rule.

Thu, 07/30/2015 - 08:17 | 6370436 garypaul
garypaul's picture

Does anybody still read any of these Greek stories? Another referendum...big deal.

Thu, 07/30/2015 - 08:21 | 6370443 negative rates
negative rates's picture

End badly too.

Thu, 07/30/2015 - 08:02 | 6370384 JustObserving
JustObserving's picture

Greece will be in political crisis for decades with the military taking over unless unpayable debt is written off. Current debt is $65,000 per taxpayer.

The rest of the world is not far behind including the land of the free with its debt and unfunded liabilities of over $1,720,000 per taxpayer.

Forward.

Kotlikoff goes on to illustrate that the fiscal gap is increasing at an alarming rate and that delay makes our problem much worse. In 2003, just a little more than a decade ago, the fiscal gap was $60 trillion. But by last year it had catapulted to $210 trillion. The fiscal gap may not continue increasing as rapidly as it has over the past decade, but with each passing year - as Congress and the President do their best to avoid action - our hole grows deeper by substantial amounts.

http://www.brookings.edu/research/opinions/2015/04/08-federal-debt-worse...

Thu, 07/30/2015 - 07:56 | 6370385 holgerdanske
holgerdanske's picture

Tsipras is acomplete idiot. He has had a referendum by the people which he had called and which he then ignored.

 

What are the qualifications for becoming a politician.?

 

Is it enough that you breathe on your own accord??

 

That seems to be the only thing Tsipras is capable of.

Thu, 07/30/2015 - 07:58 | 6370386 VinceFostersGhost
VinceFostersGhost's picture

 

 

 

he had called and which he then ignored.

 

Taking a mulligan over here boss.

Thu, 07/30/2015 - 08:40 | 6370497 WhyWait
WhyWait's picture

Tsipras inspires revulsion, but look at the rest of the Greek, the EU, the American politicians.  Liberal or conservative, of the professionals 90% (99% in the US) end up doing the Tsipras.  (Dance has been around for a long long time but we've never seen it this clearly.  Hasn't had a name but needs one.  Doing the Tsipras has a ring to it.)

The central failing is trying to build a career as a politician, and actually acquire and hold personal power, which requires deals, compromises, operating within the web of money, power and fear that the banksters, billionaire corporations and their secret services have constructed. The only ones that can hold onto their integrity in the face of this are the newcomers and those who are resigned to the role of outcast, voice in the wilderness.  

Any real challenge to the banksters' power leads to the choice between revolution or surrender and submission - and a new wave of Tsiprises.  And revolution is not a good career choice.

The European political landscape is studded with former parliamentary revolutionaries who've learned to dance the Tsiprrs and are now working for the Yankee dollah.  

   https://www.youtube.com/watch?v=ol5e7GU-Z8Y

But this show ain't over because there's no way out for Greece that the people can accept and they've been aroused and are getting a good education. 

 

Thu, 07/30/2015 - 08:00 | 6370392 mantrid
mantrid's picture

how about referendum about another referendum? Greece truly is the birthplace of democracy.

Thu, 07/30/2015 - 08:02 | 6370396 cookies anyone
cookies anyone's picture

yeah, because the last referendum solved everything

Thu, 07/30/2015 - 08:05 | 6370401 williambanzai7
williambanzai7's picture

What a maroon...

Tsipras no longer qualifies as news. He is just a rerun on the Euroclown channel.

Thu, 07/30/2015 - 09:20 | 6370623 Raul44
Raul44's picture

I think Janet called him to create some "market news" as she`s losing it. You know, so that stupid "investors" buy more dollars.

Thu, 07/30/2015 - 17:11 | 6372709 Anunnaki
Anunnaki's picture

Definitely not ready for prime time. Embarassingly bad. Even by dipshit liberal standards

Thu, 07/30/2015 - 08:05 | 6370404 Seasmoke
Seasmoke's picture

And yet Gold (and Silver) continues to get hammered $10 in milo seconds twice a week.

Thu, 07/30/2015 - 08:11 | 6370422 no1ninja
no1ninja's picture

Yup rate hike got cancelled, and gold got hammered.  

 

In this rigged economy, I think its a good indication that gold and silver buying scares a lot of people.

 

I expect it to get worse before it gets better.  The way the system is now, it pretty much needs to teeter or fall for the price to rebound. 

Thu, 07/30/2015 - 11:16 | 6371057 bigkahuna
bigkahuna's picture

There will be no rate hike until the next USSA fiat is introduced. The FRN/USD game is over and they are waiting for as long as possible to roll it up. I believe they are amazing themselves with how flatline the US population and world population are at this point.

Thu, 07/30/2015 - 08:08 | 6370409 FranSix
FranSix's picture

The Euro is going up? Start wringing your hands, another maudlin Greek tragedy is about to begin!

Tragoidiospallooza!

Thu, 07/30/2015 - 08:09 | 6370413 franciscopendergrass
franciscopendergrass's picture

I wonder how much money Tspiras is getting paid by the Euro Oligarchs.

Thu, 07/30/2015 - 08:13 | 6370426 Silverhog
Silverhog's picture

He's losing control of his support and bailout. There is no way they can make the new austerity measures work in a country that is falling apart at the seams. Businesses leaving along with medical profession. Going to be horrible place to live and work.

Thu, 07/30/2015 - 08:13 | 6370429 crashguru
crashguru's picture

plunging the country into a fresh political, social, and economic crisis

Thats how they fool the readers. When did the last one end?

Thu, 07/30/2015 - 08:23 | 6370451 BitchezGonnaBitch
BitchezGonnaBitch's picture

Can't wait to see charts like CBD/SMT in the future, that is Cheese-Backed Drahma / SpiderMan Towels. Coming to Forex near you in 2016...

Thu, 07/30/2015 - 08:27 | 6370458 overmedicatedun...
overmedicatedundersexed's picture

loss on greek bonds in billions, expense of payoffs to greek pols (aprox 200 at 100,000 euros per head and 500,000 euros for tsipras) a drop in the bucket..now guess any vote outcome in parliment.

Thu, 07/30/2015 - 08:28 | 6370461 scatha
scatha's picture

Power corrupts. Absolute power corrupts absolutely. That's what happened to Tsipras as a human being.

However, flawed in his ideas he wanted to see light in the tunnel and would not lead Greeks to the abyss of perpetual debt enslavement, perhaps naively thinking that he would deal with economist or financiers instead of EU mafia thugs.

Now when he's already betrayed everything he pledged to uphold what's left is senseless clutching to the illusory power, he never actually held, a shameful spectacle of personal defeat and betrayal of Greek people as well as European leftist movement or what ever left of them. 

For truth about Greece debacle see:

https://contrarianopinion.wordpress.com/greek-odyssey-through-debt/

Thu, 07/30/2015 - 08:45 | 6370510 youngman
youngman's picture

Yes and its like next week after the bailout all the people and businesses just start paying all of their taxes due....yeah right...this country is toast

Thu, 07/30/2015 - 08:45 | 6370511 smacker
smacker's picture

Wake me up when the fat lady comes out...

Thu, 07/30/2015 - 08:52 | 6370532 keed
keed's picture

who gives a shit unless greece 'officially defaults'  and starts the worldwide Derivatives meltdown.  if not,  same ol story... greece takes it in the ass for the rest of time

Thu, 07/30/2015 - 09:07 | 6370576 Caleb Abell
Caleb Abell's picture

A referendum would be really useful since everyone knows how well Tsheepass pays attention to votes.

Thu, 07/30/2015 - 09:32 | 6370681 JJdog
JJdog's picture

This Tsipira tool bag should just work for Obama or just be the next President of the US. he is dumb but knows how to lie to clueless liberals and knows exactly what to do to sell his country out.  Perfect President material. 

Thu, 07/30/2015 - 09:35 | 6370695 johnlocke445
johnlocke445's picture

I swear this guy Tsipras is a full blown nutcase!!!

Thu, 07/30/2015 - 09:36 | 6370699 directaction
directaction's picture

Great idea.
Another vote will fix everything. 

Thu, 07/30/2015 - 09:38 | 6370703 metastar
metastar's picture

Tsipras, you are a turd. Your people have already spoken. F U !

Thu, 07/30/2015 - 09:39 | 6370710 Chuck Knoblauch
Chuck Knoblauch's picture

This man has no testicles.

Thu, 07/30/2015 - 10:05 | 6370820 BarbaricRelic
BarbaricRelic's picture

But what about muh roads!?

Thu, 07/30/2015 - 10:10 | 6370830 bluez
bluez's picture

History is merely the repeating cycle of CORRUPENTROPY. A new cycle starts out magnificent. But over the many years, too much is bought and sold. Corrupentropy builds up. Nobody can afford to tell the truth anymore. Then it all falls apart.

It's happening right now. To you.

Thu, 07/30/2015 - 10:45 | 6370939 ironmace
ironmace's picture

*yawn*

Thu, 07/30/2015 - 10:47 | 6370947 WtfBatman
WtfBatman's picture

why is 'victory' not an option if the options on the table include 'compromise or default'???

default = victory

when you're fucked either way (proper fucked) the best you can muster is to at least take another enemy down with you ...

Fri, 07/31/2015 - 01:11 | 6374215 BarkingCat
BarkingCat's picture

Maybe the Greeks have been taking advice from the French.

..although the French reputation as surrender monkeys is really undeserved.

Thu, 07/30/2015 - 11:23 | 6371083 Stumpy4516
Stumpy4516's picture

Tsipras has used internal "votes" before to identify party memebers who oppose his agenda and then has attempted to force them to resign.  His masters are close to taking Greece and are pushing him hard to finish his work.  Last time Tsipras was effective in kicking some who disagreeded with him out of the party.

Also, Tsipras pushed through a deal with Israel that gives immunity to Israel's forces in Greece.  (How many Greek forces are running around Israel?) Tsipras is getting the stage set.  Israel will be running the covert killing machine.

http://investmentwatchblog.com/greece-signs-military-deal-with-israel/

 

Thu, 07/30/2015 - 11:26 | 6371095 Peter Pan
Peter Pan's picture

Tsipras name is an anagram of rapists.

And a rapist he is after what he has done to the Greek public on behalf of whoever has blackmailed him, bribed him or threatened him.

Thu, 07/30/2015 - 11:34 | 6371130 Able Ape
Able Ape's picture

Tsipras wishes he had the IQ of a overripe cantaloupe.  I'm sure the aforementioned cantaloupe could hatch a creative plan AIDING the people of Greece....

Thu, 07/30/2015 - 12:34 | 6371376 wcsinc27
wcsinc27's picture

Hi Tyler,

these going ons show how silly all your statements on german domination over Greece were. Actually who won the negotiations recently was Greece, not Germany. Probably difficult to see from an american perspective: it's too far away, you are myope and full of silly prejudices against Germany. And the rest of the crowd here is even more stupid.

Thu, 07/30/2015 - 12:57 | 6371478 scatha
scatha's picture

You are too close to see that Germany dominate EU.

Thu, 07/30/2015 - 12:46 | 6371400 sagitarius
sagitarius's picture

who cares?

Greece cannot pay its debt back.

Greece has to leave € zone, no way arround.Btw it is to their advantage.

 

(tech comment: in Linux you generate € this way: press&hold down left shit+control, press "u' and press on the numkeypad 20  and finaly press (in capitals) AC and release shift control.)

Thu, 07/30/2015 - 17:05 | 6372675 Anunnaki
Anunnaki's picture

Alexi Tsipras, hung like a hamster

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