by

Rebels from Greece’s governing left-wing Syriza are to break away and form a new party.

Analyzing the situation in Greece, the Federation Council member said that the deal between Athens and the European Union, which many people in the country saw as a concession made by Tsipras, caused discontent inside his party and its parliamentary faction.

The lawmakers, whose names were read out on Friday by a deputy parliament speaker on television from Athens, will be called “Popular Unity” and led by former Energy Minister Panagiotis Lafazanis. On Friday, the head of the conservative New Democracy party, Evangelos Meimarakis, was given three days to seek coalition partners.

The leftist Syriza party of Greek Prime Minister Alexis Tsipras has split a day after Tsipras announced snap general elections following rebelion in his party.

“The way things are now… we believe it is impossible for this parliament to produce a government”, Theodorakis said after the meeting.

In this way, the news agency stressed, they would be third in line to be given the mandate to form a future government.

Syriza had won 149 seats in Greece’s 300-seat parliament in the last election in January.

Even with financial aid, the political uncertainty is another problem that negatively affects Greece economy, and could result in a bailout failure, experts say.

As Greek Prime Minister steps down, Greeks awaits a new elections and experts say Syriza must enter a coalition to win.

“The programme was agreed with the Greek government, and that runs on for three years“.

She continued that the election is unlikely to change a great deal, with Mr Tsipras running again, given his earlier pledge to stand by the terms to which he signed up.

Tsipras has long argued that Greece will never be able to repay all its debts and wants some to be written off. While the euro zone favours merely delaying interest and principal repayments, Tsipras could still present any debt relief moves as an achievement to the electorate. “Regardless of elections, reforms can now be implemented”.

Why Euro is less bothered on Greek development now, while little more than a month back turmoil in the country was creating havoc for the common currency?

This latest round of elections come as Syriza has splintered following the passage of Greece’s latest bailout package.

“We assume that whatever the government, this new deal and its conditions will remain”.

Greece’s creditors are expected to welcome Tsipras’ bid to bolster his hand, with Marcel Fratzscher, an advisor to Germany’s economics minister, describing his resignation as “good economic news for Greece and for Europe”.