Financial Times, 18 mai

Leaders of the hard-left faction of Greece’s Syriza party have called for a “rupture” with creditors in a public challenge to Alexis Tsipras, the prime minister, as he moves closer to a new bailout deal.

The rebels include five members of Syriza’s political bureau and Central Committee led by John Milios, a former shadow finance minister.

Their gambit marked the first time since the party came to power at a general election in January that the hardline faction has publicly voiced its opposition to economic policy choices, even raising the option of a Greek departure from the euro.

“We have to choose between signing what is obviously an austerity agreement and making a break with lenders . . . Syriza can’t become a party of austerity and this government cannot implement a memorandum [bailout agreement],” the rebels said in a text published on Monday on a leftwing Greek website.

Syriza hardliners have been fomenting opposition to a deal with the EU and International Monetary Fund for several weeks. The text, due to be discussed at a public meeting on Tuesday, points to an escalation of anti-austerity campaigning in Syriza that, if sustained, could split the party in a parliamentary vote.

“Our only choice is a rupture with the creditors — suspending loan repayments, [imposing] measures to restrict free movement of capital, putting banks under state control, taxing capital and the wealthy to finance measures to support ordinary people . . . and even a break with the euro,” it said.

The government has been locked in talks with its international creditors for four months to try to unlock some €7.2bn in undisbursed bailout funds. But progress has been slow amid disagreements about economic reforms the creditors are demanding in exchange for the money.

As the rebels released their plea, To Vima, a Greek newspaper, published details on its website of a supposed breakthrough in the talks — a new €5bn austerity plan it reported was proposed by the European Commission

To Vima said the draft deal would release about €5bn in aid to Greece — €3.7bn immediately — and avert a default on a €1.2bn loan repayment to the IMF due in June, provided the parliament approves reforms needed to implement the plan this month.

The government did not immediately comment on the proposal. In Brussels commission officials played down its importance, noting that several proposals have been exchanged by the parties in recent months.

If accurate, the most interesting aspect of the proposal may be that it does not envision the IMF contributing any money to Greece.

Mr Milios, a veteran Marxist economist, has sharpened his arguments against austerity since he was ousted as head of Syriza’s economic policy team this year in a shake-up of the political office, the party’s top decision-making body. But he remains an influential member of the Central Committee. Others in the rebel group represent different factions with a Marxist background.

Mr Tsipras insists he will carry out his mandate to end seven years of austerity while ensuring Greece remains a member of the single currency.

But even mainstream Syriza politicians, including Zoi Constantopoulou, the powerful speaker of parliament, have criticised the government over its apparent willingness to compromise, in spite of the premier’s insistence that “red lines” on reducing pensions and reforming the labour market — both longstanding demands by creditors — will not be crossed.