The government appears to be heading towards a confidence vote in Parliament that could then trigger snap elections in Greece but there is some doubt regarding exactly how events will unfold in the weeks ahead.
The third bailout passed through Greek Parliament comfortably on Friday morning but a growing rebellion from SYRIZA MPs left Prime Minister Alexis Tsipras in a less than comfortable position.
The leader of SYRIZA’s Left Platform, Panayiotis Lafazanis, got out of the blocks early on Thursday as he announced the creation of an anti-bailout party several hours before Parliament was due to vote on the third bailout.
Greek Parliament is expected to vote on the country’s third bailout of around 85 billion euros with international lenders on Thursday after the negotiating teams appeared to reach an agreement on Tuesday morning.
The growing prospects of an agreement between Greece and its lenders this week on a third bailout mean that significant political developments might not be far off.
The Greek government is now openly talking about the possibility of snap elections in the autumn, after it has wrapped up an agreement with the institutions on a third bailout.
The first round of talks between Greece and its lenders are due to conclude on Tuesday with serious doubts remaining about whether the various sides can reach an agreement on time.
After sitting for around 12 hours on Thursday, SYRIZA’s central committee granted brief but potentially vital respite to Prime Minister Alexis Tsipras by accepting his proposal for an emergency party congress in September rather than the immediate gathering suggested by those opposing the third bailout.
Prime Minister Alexis Tsipras issued an open challenge to the dissenters within SYRIZA on Thursday when he proposed either an emergency congress in September or a ballot of member this Sunday to assess the party's position on the agreement for a third bailout.
The quartet of officials representing Greece's lenders are due to begin discussing with the government from Wednesday a number of difficult issues that could stand in the way of an agreement on the third bailout being reached on time.