Tsipras Challenges Party Rebels With Threat of Snap Greek Ballot

29-Jul (Bloomberg) — Greek Prime Minister Alexis Tsipras took on dissenters within his own party, warning he’ll call an election unless backbenchers who oppose his deal with creditors fall into line or give up their seats.

“I’m the last person who would want elections,” the 41-year-old premier said in an interview Wednesday with Sto Kokkino, a radio station linked to his party. “If I don’t have a parliamentary majority, though, we will be forced to head to a snap vote.”

After five years of austerity, two bailouts, and the deepest recession in more than half a century, the premier is asking voters and lawmakers to extend the budget restrictions that he himself had pledged to end when he came to power in January. Greece has no other viable option to but to accept the demands of its creditors, he says.

…According to Piccoli, the internal quarrel within the governing party could derail talks between Greece and its creditors, as the two sides rush to seal an agreement before a payment on bonds held by the European Central Bank comes due, on August 20.

“The risk of unforeseen intra-Syriza developments that could delay, and at worst derail, the ongoing talks between Athens and its international creditors cannot be discarded,” Piccoli said.

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PG View: If Greece ends up with a new government the deal could be off and the whole negotiation process may have to start all over. Unfortunately, the timeline is likely far too short to allow for a new agreement to be struck before the country defaults yet again.