Alexis Tsipras set to resign and call September snap election

The Greek Prime Minister, Alexis Tsipras, will resign later on Thursday, paving the way for election next month.

According to a Greek government official, Tsipras will announce his decision in a televised message on Thursday night, during which he's expected to call snap elections for 20 September.

The Greek PM, who was elected in January, was dealt a crucial blow by within the ranks of his own party, as a large number of Syriza dissidents opposed the measures Greece agreed to in order to secure a third bailout programme.

"Reports that snap Greek elections will be held on 20 September seem to support our view that Greece will struggle to implement its third bailout and secure crucial debt relief," said Jennifer McKeown, senior European economist at Capital Economics.

"The election is unlikely to change a great deal. It seems likely that Tsipras will run again given his earlier pledge to stand by the harsh terms to which he signed up. Syriza is still easily the most popular party in Greece (with about 40% of the vote compared to runner-up New Democracy’s 20% based on a 18 July poll)."