Alexis Tsipras faces first test since bailout rebellion

Greek prime minister Alexis Tsipras leaves an EU summit in Brussels yesterday. Picture: AP

Greek prime minister Alexis Tsipras leaves an EU summit in Brussels yesterday. Picture: AP

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GREEK prime minister Alexis Tsipras faced his first test in the country’s newly elected parliament yesterday since a bailout rebellion split his party and triggered a snap general election last month.

Politicians were set to vote on a new austerity reform package to penalise early retirement and expand a widely hated property tax, among other cost-cutting commitments required in return for a €2 billion (£1.4bn)loan installment.

The loan is part of Greece’s third major bailout agreement with eurozone lenders, worth a total of €86bn over three years.

That July deal saw Mr Tsipras abandon a pledge to bring an end to austerity and alienated a large section of his radical left Syriza party. The split forced him to call snap elections in August. Syriza came out on top and was able to renew a government with the small right-wing Independent Greeks.

His government is now racing to overhaul its troubled pension system and impose new cutbacks. The measures are required before crucial funds can be injected into the country’s ailing banks. The government also wants relief from its debt, which is set to exceed 190 per cent of Greece’s annual national income next year. Eurozone lenders have promised discussions but only if certain economic measures are met.

The cost of the austerity measures, alongside with the ongoing controls on money transfers in the country, are expected to keep Greece in recession over the next two years and unemployment above 25 per cent.

Mr Tsipras has so far faced little dissent from his party or right-wing coalition partners during a parliamentary debate on the bill that started at committee level on Tuesday.

His coalition controls 155 seats in the 300-member parliament, with support from at least 151 required for the bill to pass.

A breakaway party formed by politicians who split with Mr Tsipras’ party during the summer failed to get elected to parliament in the September ­election.

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