Tsipras to push bailout package, hike taxes

The just sworn in Prime Minister for Greece Alexis Tsipras has initiated the process for paving the way for a third round of bailout package for the revival the economy.

He inducted two bailout negotiators into the government economic team. The move aimed at assuring European partners of the government's commitment on implementing the bailout package.

Tsipras has also reappointed Euclid Tsakalotos as Finance Minister and made George Chouliarakis as Deputy Finance Minister. The left-wing leader has approved the proposal on increasing taxes and implementing cost-cutting measures.

The fresh round of meetings on bailout negotiations is expected to commence in October, where the major focus would be on recapitalizing banks and debt relief for the government. 

Tsipras-led Syriza party won the elections held on Sunday (20 September) with a narrow majority of 155 seats including supporting parties in the legislature of 300 members.

The Oxford University graduate and Marxist economist is in a different situation to implement the measures, against which he had been fighting for long. Tsipras is focusing on restructuring and reforming the government.  

The Deputy Finance Minister George Chouliarakis was Finance Minister in the caretaker government during the election campaign. Chouliarakis was also a senior member of the bailout team.

Considering his knowledge about the bailout norms is helpful for the government, Tsipras took him into the Cabinet of ministers.

Tsipras was under severe pressure when his government was about to accept the euro 86billion bailout package in July. However, a section of strong leftists within Syriza party opposed Tsipras and pressurized the government not to go ahead with the bailout package.

This situation led Tsipras to dissolve the government and seek a fresh mandate on the bailout package. 

Syriza party won 145 seats, four seats less than the previous elections held in January 2015, New Democracy got 75, Golden Dawn 18 seats, Pasok got 17 seats, KKE got 15 seats, To Potami got 11 seats, Anel got 10 seats and Union of Centrists won nine seats.

Barring Golden Dawn and KKE with combined majority of 33 seats are opposing bailout package, while remaining parties are supporting it. This equation makes the job smoother for Tsipras in implementing the bailout package.

Greece witnessed two elections this year as Tsipras resigned from Prime Minister responsibility in August seeking a mandate on the bailout package. The 41-year-old leftist won the second time also. Interestingly, he campaigned against the austerity plan in January and won the elections to become the Prime Minister. 

Subsequently, he was led to a situation where there was no option, but accepting a bailout package. He sought public mandate and went for second-time elections barely completing seven months of the four-year term.

After coming back to the power for the second time, all eyes on Tsipras on how he manages to pull the ailing economy out of the crisis.

The main challenge for Tsipras will be striking a balance between European lenders on the bailout package and taking forward the economic reforms. Adding to this, there's another fresh problem for the country in the form of refugees.

According to unofficial statistics, over 430,000 refugees and migrants passed through Mediterranean to Europe this year so far. About 310,000 refugees reached Greece, estimated International Organization for Migration. Handling the increased number of refugees is real challenge for the crisis-hit economy.