European policymakers are hopeful that Greece's third bailout package will not be derailed, following Greek Prime Minister Alexis Tsipras' resignation and call for snap elections. Ciara Lee reports.
Hoping to strengthen his hold on power or casting Greece back into more political chaos? With fresh elections called for 20th September, Alexis Tsipras wants to crush a rebellion in his leftist Syriza party and seal public support for the recently agreed 86 billion euro bailout program. But some investors are concerned it could delay agreed reforms. CCLA's James Bevan. (SOUNDBITE) (English) CHIEF INVESTMENT OFFICER AT CCLA, JAMES BEVAN, SAYING; "Creditors absolutely expect structural reforms but equally the disbursement of the bailout package for Greece is dependent on implementation of the agreed agenda. And if there is any backsliding, then that will be a very difficult challenge for the Greek government and the Greek people." A snap election may allow Tsipras to capitalise on his current popularity with voters before the toughest parts of the program kick in. These include tax hikes and controversial pension cuts. Head of Equities at Hargreaves Lansdown, Richard Hunter, thinks the deal is unlikely to be affected. (SOUNDBITE) (English) HEAD OF EQUITIES AT HARGREAVES LANSDOWN, RICHARD HUNTER, SAYING: "This is basically the man himself asking for the support of the Greek people for the bailout package and for the necessary reforms." It comes in a week when things had been looking up. Athens received its first tranche of bailout money and was able to make a 3.2 billion euro debt repayment to the ECB.