Greece’s prime minister Alexis Tsipras has announced his resignation and called an early election following the country’s latest bailout agreement with European creditors.
Earlier this month the Greek parliament that would see the country secure a further €85bn (£61bn) in funding.
In order to receive the money over three years, more products and services in Greece will be subject to the top VAT rate of 23 per cent, with corporation tax increased to 28 per cent.
According to the BBC, Greece received the first €13bn £9.3bn) instalment of the bailout on Thursday after it was approved by relevant European parliaments.
It allowed Greece to repay a €3.2bn debt to the European Central Bank, avoiding a potential default.
In a televised address yesterday evening, Tsipras said: “The political mandate of the 25 January elections has exhausted its limits and now the Greek people have to have their say.
“I want to be honest with you. We did not achieve the agreement we expected before the January elections.”
A date for the election has not been confirmed, although reports suggest it could be held as soon as 20 September.