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Snap election may offer Greece a way out

Friday, June 05, 2015 - 01:31

Greek PM Alexis Tsipras may call snap elections to gain public support for tough reforms needed to secure badly needed cash. As Kirsty Basset reports, it comes after Greece delayed a payment to the IMF.

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Greek Prime Minister Alexis Tsipras is in a seemingly impossible position. Elected in January with a mandate to end austerity and stay in the euro, he is being asked by international creditors to swallow more austerity, or face bankruptcy. A snap election may be a way of gaining public legitimacy for the difficult decisions that will need to be taken, to secure more cash. Vicky Pryce is Chief Economic Adviser at CEBR. (SOUNDBITE)(English) CHIEF ECONOMIC ADVISER AT CEBR (CENTER FOR ECONOMICS AND BUSINESS RESEARCH), VICKY PRYCE, SAYING: "People are beginning to talk about the possible election maybe in early July which will hopefully - as far as Syriza is concerned - possibly strengthen their hand, especially if they get the mandate to accept some of these policies which the creditors are pushing on Greece which are quite tough." The country has already delayed one payment of 300 million euros - an unusual step, but not yet a formal default. It's decided to bundle together all its payments due in June, which total 1.6 billion euros, into a single payment at the end of the month. Some say it's a tactical move. (SOUNDBITE)(English) CHIEF ECONOMIC ADVISER AT CEBR (CENTER FOR ECONOMICS AND BUSINESS RESEARCH), VICKY PRYCE, SAYING: "It gives a negotiating hand to the Greeks because they are saying "we are not going to pay it unless we are sure that we are having some money coming through. But it also highlights the need for getting a solution as quickly as possible." Greeks are withdrawing their money, over fears capital controls may be introduced. The current bailout package expires at the end of the month - if a deal isn't reached by then, default seems inevitable.

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Snap election may offer Greece a way out

Friday, June 05, 2015 - 01:31