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> Economy

WSJ: Rough road ahead for Tsipras

Newspaper predicts elections in a few months

Newsroom August 12 01:43

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The new deal reached between Greece and its creditors will the harshest yet and a test for the coalition Greek government led by the far left SYRIZA party, writes Wall Street Journal. The newspaper points out it will help stop uncertainty, but will demand more austerity, which in turn will lead to deeper recession. WSJ writes the imposition of the reforms as laid out in the deal will present a real test for Greek PM Alexis Tsipras in his own party, where he will have to face the dissenting members of the Left Platform who are expected to vote against it in parliament. The piece projects that the Greek PM could be forced to call early elections in a few months, even if he manages to pass a number of ‘hot’ reforms in this week parliament, such as privatizations of state assets and the measures in the labor market. According to the newspaper’s sources, after the agreement is officially approved the first tranche of the new bailout loan could be 25bln Euros.

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