Greek government formation, January

By George Gilson

A day after the European Commission issued a report warning that the government's new handouts could provoke a fiscal derailment, Prime Minister Alexis Tsipras hit out at creditors, suggesting that some officials are exploiting the victory of conservative New Democracy in the recent European Parliament election to undermine his administration's relief policies.

By George Gilson

With the end of the pro-bailout and anti-bailout dilemma that SYRIZA used in 2015 to sweep to power, Prime Minister Alexis Tsipras today brandished the threat of a return to austerity if main opposition conservative leader Kyriakos Mitsotakis comes to power.

Greece's prime minister says the results of recent European elections, in which his party suffered a heavy defeat that forced him to call early elections, have led some in Brussels and Greece to attempt to undermine his government's introduction of new benefits and consumer tax cuts.

Greek Prime Minister Alexis Tsipras said on Tuesday that his government would bring legislation to Parliament to cancel lowering an exemption on income taxes before a snap election on July 7.

The measure would otherwise come into effect next year and would result in lower take-home pay for all Greeks.

After a devastating performance in recent polls for European Parliament and regional and local government, the Independent Greeks (ANEL) party has decided to defer a decision on whether it will run in next month's general elections until a meeting on Sunday of its national council.

Commenting on the losses suffered by leftist SYRIZA in Sunday's local and regional authority runoffs, former finance minister Yanis Varoufakis attributed it to "inconsistencies" in its stances.

"SYRIZA never had deep roots in local government. But it chiefly paid for the inconsistencies of the past four years," Varoufakis told Skai.

From the very start of his political career PM Alexis Tsipras was constantly gaining ground.

Until SYRIZA's defeat on 26 May, he always scored victories, small or large.

As a very young candidate in the Athens mayoral race on the "Open Athens" ticket, he garnered over ten percent of the vote, more than double what his party was polling in national elections.

The dilemma that Prime Minister Alexis Tsipras presented to voters was akin to asking them whether they prefer to be rich and beautiful or poor and ugly.

When you frame the question in this way, as Tsipras did before the European Parliament election, it is natural that you will be surprised if the outcome is not that which you expected.

Former finance minister Yanis Varoufakis put on a brave face after marginally failing to secure a seat in the European Parliament with his MeRA25 party.