The far-left faction within Greece’s Syriza party that has defied outgoing Prime Minister Alexis Tsipras' call to back a third bailout has broken away to form a new party
A parliamentary deputy speaker announced on Friday the new party will be called "Popular Unity" and headed by former Energy Minister Panagiotis Lafazanis, the leader of the faction.
The party would be the third largest bloc in Greece's 300-seat parliament with 25 lawmakers more than the centrist To Potami and far-right Golden Dawn parties, which each have 17 lawmakers in parliament.
Greek New Democracy Party seeks to form new government
The second largest party in the Greek parliament, New Democracy, says it will construct the new government after the resignation of Greek Prime Minister Alexis Tsipras to avoid the negative impact of an early election.
Greece's conservative opposition leader Vangelis Meimarakis told reporters that snap elections expected on September 20 "had no use" and he would try to form a government "in order to avoid, at this moment, all the negative effects that this election could create for a very long time."
The Telegraph reported that the leader of the center-right opposition party, Vangelis Meimarakis, said at a press conference on Thursday that Tsipras’ decision to resign was "dishonest."
Meimarakis intended to negotiate with To Potami (The River) party and social democratic party PASOK (Panhellenic Socialist Movement) to form a new government.
The leaders of the opposition have three days to work out whether or not they can come up with a viable parliament, according to the Greek constitution. If the leaders of the second and third largest parties in Greece can not form a new parliament, a caretaker regime can be formed instead.
Tsipras, who has been facing dissent within his anti-austerity Syriza party, announced his resignation on Thursday and called for early general elections in a bid to secure support for his stand on the new bailout agreement with his country's creditors.
The third, 86-billion-euro ($95-billion) bailout package for Greece was approved by the Eurogroup on August 14, but the Greek population has largely been opposed to it as it stipulates austerity measures such as tax hikes and pension cuts.