Tsipras resigns, paving way for snap Greek election

With all the intense attention the world has been paying to China recently, we've almost forgotten about the other major drama that remains on stage in the Mediterranean.  Even though the EU bailout package enjoys overwhelming (if grudging) support from the Greek people and certainly overwhelming support from the Greek political factions opposed to Syriza, the Greek PM Tsipras is getting a lot of static from his own party which is throwing every obstruction they can in the path of reform.  So Thursday, Tsipras joined China in doing the shocking and unexpected in an attempt to once and for all put this crisis to rest -- he resigned!

But that hardly means defeat.  The fact is many astute observers, including Wall Street analysts, think it's a pretty shrewd move.  He no sooner quit than he called for snap elections to be held soon, hopefully September.  He is gambling that he will win this election by a landslide and thereby accomplish two major objectives.  By proving that he still commands majority support from his fellow Greeks, then if it has been a German conspiracy all this time (which many economists believe) to play hardball in the hopes of unseating him, such a victory should give him clout for a considerable softening in the continuing negotiations with the EU.  Such a victory should also effectively put a political muzzle on his fellow Syriza politicians who have been giving him such a hard time as he has tried to save his country from disaster.

So China is not the only major production the world is watching with baited breath.  Greece is indeed still worth watching and may indeed prove considerably more instructive ... and entertaining.  Stay tuned.

Tsipras resigns, paving way for snap Greek election | Reuters