BLOOMBERG Tsipras Faces Mutiny

Bloomberg reports:

Prime Minister Alexis Tsipras will return to face a mutiny within his coalition after he surrendered to European demands for action to qualify for up to 86 billion euros ($95 billion) of aid Greece needs to stay in the euro.

Tsipras is due back in Athens on Monday to confront lawmakers from his Syriza-led bloc who rebelled when he sought their endorsement two days ago for spending cuts, pensions savings and tax increases. The Greek parliament has until Wednesday to pass into law key creditor demands including streamlining value-added taxes, broadening the tax base to increase revenue and curbing pension costs.

With the threat of defections rippling through his bloc, Tsipras will “have to change his administration and clear out hardliners and radicals from his party,” as well as rely on opposition support to pass the necessary measures, said Eurasia Group analysts Mujtaba Rahman and Federico Santi. “But it is a tough call to determine how Tsipras will go about doing this.”...

The conditions that Tsipras swallowed comprised a laundry list of unfinished business from Greece’s two previous bailouts and a new demand for the government to transfer 50 billion euros of state assets to a holding company that will seek to either sell or generate cash from them....

The terms are significantly tougher than those Tsipras labelled “blackmail” when he persuaded Greek voters to reject them in a referendum a week ago. In addition to requirements on pensions and sales taxes, measures that Tsipras accepted last week, the leaders demanded that creditor representatives return to Athens with full access to ministers and a veto over relevant legislation, intrusions that he has long rejected.