Greek PM tells his bailout rebels: Put up or shut up

GREEK prime minister Alexis Tsipras is hoping to silence rebels in his own party who are opposing the crucial bailout deal with the country’s creditors.

Members of the Left-wing Syriza party are to be asked to vote on whether they will accept a package of loans from creditors in exchange for more tax increases and budget savings.

Mr Tsipras is gambling that if he wins the vote, he would discredit the rebels who claim the terms are too painful and that Greece would be better off leaving the euro.

The rebels’ constant opposition threatens to splinter the party and government and has raised the possibility of fresh elections this autumn.

Addressing the party’s 200-strong decision-making body, Mr Tsipras likened the vote to putting ‘the pin back in the hand grenade’. He added: ‘We have to agree that we can’t go on this way.’

His move comes after talks about the bailout were thrown into turmoil when the International Monetary Fund said it would have no involvement in Greece until it receives explicit assurances over its ability to sustain its debts.

An IMF official said the fund would withhold financial support unless Greece guarantees it can carry out ‘comprehensive’ reforms.

The vote planned by Mr Tsipras is due to be held on Sunday. It could precede an extraordinary party congress in September, when the Greek government hopes to have concluded the rescue agreement, strengthening the prime minister’s hold on power.

In two successive votes in parliament this month, nearly a quarter of Syriza’s MPs refused to support new austerity measures demanded by creditors before a third bailout deal worth an estimated 85billion euros can be sealed.

The far-Left rebels claim Syriza has abandoned its principles and have openly voiced support for Greece to turn its back on the euro as its national currency.

Panagiotis Lafazanis, recently fired as energy minister in a reshuffle, called for Greece to return to a national currency. He told supporters: ‘An exit from the euro ... in spite of all the dark propaganda, would in no way be a disaster.’

Mr Tsipras rose to power in January on a strong anti-austerity platform but was forced to accept another batch of austerity measures during a summit of eurozone leaders this month.

Opposition parties are propping up his coalition government long enough to negotiate a new bailout and keep the country in the eurozone.