Greece

Greek leftist Alexis Tsipras stormed back into office with an unexpectedly decisive election victory on Sunday, claiming a clear mandate to steer Greece's battered economy to recovery, Reuters reported. The vote ensured Europe's most outspoken leftist leader would remain Greece's dominant political figure, despite having been abandoned by party radicals last month after he caved in to demands for austerity to win a bailout from the euro zone.

With new elections scheduled for Sunday and Greece’s relations with its European partners in a fragile state, this debt-ridden country has much on the line, the International New York Times reported. The next prime minister will have to navigate the tricky politics of the European Union at a time when some European leaders have made clear that their patience for keeping Greece in the eurozone is running out.

In the running debate over how to revive the Greek economy, there is one thing that locals and foreigners can agree on: The airport on this resort island, like many others in tourist-dependent Greece, does not befit a eurozone country, the International New York Times reported. The big, divisive question is whether the Greek government will be willing and able to hand over management of Corfu and many of the country’s other busiest airports to outside professional management, as part of Greece’s economic makeover.

Greece’s former Prime Minister Alexis Tsipras pledged to continue fighting for better bailout terms from the country’s creditors, as opinion polls show that his left-wing Syriza party is tied with conservative rival New Democracy two weeks before snap elections, The Wall Street Journal reported. Mr.

Usually prime ministers call snap elections only when they have a great story to tell. But Alexis Tsipras has never been afraid to challenge conventional political wisdom. He is seeking a renewed mandate after just eight months in office despite what must rank as one of the worst economic records of any leader of a modern industrialized country outside of wartime.

The upcoming Greek election may reopen the can of worms that the 86 billion euro bailout deal with creditors was supposed to close, the International New York Times reported. Given that no party is likely to emerge from the Sept. 20 vote with a majority, it may be hard to form a strong government that can implement the program. There’s even a risk that there will be yet more elections, tipping Greece back into crisis. When Alexis Tsipras set the election in motion by resigning as prime minister, he probably thought he would win fairly easily.

Greek bank bonds dropped like a stone this week as the prospect of painful haircuts came to the fore, potentially heralding a new era for senior debt investors who have previously been protected throughout Europe's various financial crises, Reuters reported. The Eurogroup's statement after approving Greece's 86bn third bailout increased the chances of losses being imposed on senior debt by placing senior bondholders at risk of bail-in while explicitly excluding depositors.

Greece narrowly avoided defaulting on its debt on Thursday, making a crucial payment to the European Central Bank after receiving billions of euros in new aid from other eurozone countries, the International New York Times reported. But most of the new aid package will be used to repay existing debt rather than to rebuild the shattered Greek economy, leading to criticism that eurozone creditors are repeating the same austerity policies that delivered six years in a row of recession in Greece.

In a related story, The Wall Street Journal reported that Greek Prime Minister Alexis Tsipras handed in his resignation to clear the way for early elections expected on Sept. 20, in a gamble aimed at bolstering his power and ability to implement the country’s bailout deal. In a televised speech late Thursday, Mr Tsipras said that he had resigned, along with the government, in a bid to seek a clear mandate that would help the country face upcoming difficulties.

Germany’s parliament ratified a new Greek bailout deal, but a record number of lawmakers in Angela Merkel’s conservative bloc rejected the motion, highlighting the political risks the chancellor is taking in supporting Greece, The Wall Street Journal reported. The “yes” vote in Germany’s Bundestag cleared one of the last hurdles to the rescue, allowing eurozone finance ministers to give final approval for the bailout later on Wednesday.