In a move that could either make him or break him, Greek Prime Minister Alexis Tsipras took a dramatic step Thursday by announcing that he would resign his position and hold early elections next month after being in office for less than one year.
Tsipras made some bold moves over the last few months, some that were contrary to the majority voice his people. After a near Grexit from the Eurozone membership, he chose to accept the conditions imposed on his country and agreed to implement austerity provisions that would enable him to repay the first installment of $3.2 billion of its outstanding debt to the ECB.
After setting the bailout deal with the IMF in place, Tsipras feels he must to go back to his people in order to guarantee a political majority in his government after nearly a third of lawmakers from his Syriza party refused to back the 86 billion euro ($96 billion) program.
Debt Payments at Risk
Tsipras’s resignation may not be the wisest move at this time and it could have a negative reaction. According to credit ratings agency Moody's, the announcement could act to increase the risk of Greece failing to stick to its latest aid deal.
"Greek Prime Minister Tsipras's move to step down and call snap early elections on Sept. 20 could elevate program implementation concerns and, potentially, puts future official sector disbursements at risk," Moody's said in a statement.
Early elections could take place as early as Sept. 20.
