Greece crisis: Tsipras proposes second bailout referendum

Greek prime minister Alexis Tsipras has thrown down a gauntlet to rebels within his Syriza party - and injected fresh jeopardy into ongoing talks on a third bailout - by proposing a referendum of party members on a deal agreed with creditors.

   In a confrontational speech to the party's congress in Athens, Reuters says Tsipras challenged dissenters who think "they could have achieved a better deal" to "come out and say that".

   He proposed that internal disagreements should be resolved by holding an 'emergency congress' to discuss longer-term strategy in September, after negotiations with creditors will have concluded. But in response to calls from some quarters for an "immediate solution", he offered the vote as an alternative, to be held this Sunday.

   He referred to the option as a 'referendum', but rather than a public poll this time only Syriza members would vote. While it would not carry the same significance as the original bailout referendum, if a sizeable mutiny undermined the government it could prompt fresh elections and throw talks on a new €86bn rescue into chaos.

   The Financial Times says the offer is an attempt to head off growing unrest within the governing party, coming in particular from a faction known as Left Platform which has openly argued that Greece should have rejected the creditors' offer and returned to the drachma. It will now be down to the party's central committee to decide whether the referendum should go ahead.

   About 30 out of Syriza's 149 MPs voted against the government on two key bills earlier this month, which introduced reforms demanded by Eurozone partners and the IMF to open new bailout talks. This has pushed the government close to thresholds that might see it lose a confidence vote, although it could probably count for the time being on pro-European opposition parties.

   Elsewhere, another barrier to closing a deal has emerged. The FT reveals that a confidential analysis presented to the IMF board has determined that Greece does not qualify for aid from the fund because of its high debt levels and poor record of implementing reforms. While this does not preclude IMF involvement, seen as critical by Germany, it does mean that the fund may "not decide whether to agree a new programme for months - potentially into next year".

Πηγή: theweek.co.uk