Tensions between Greece and its creditors are once again on the rise. The European Stability Mechanism (ESM), the eurozone's permanent bailout fund, said Dec. 14 that it would delay plans to grant Greece debt relief measures in response to initiatives that Athens recently rolled out, allegedly without consulting its creditors. In early December, the Greek government announced a one-off Christmas bonus for the approximately 1.6 million retirees who receive less than 800 euros ($833) a month. A few days later, Athens said that some islands on the Aegean would not be subject to the new value-added tax demanded by the creditors. Prime Minister Alexis Tsipras justified these measures by arguing that they were reasonable given Greece's recent fiscal surplus. Greece's creditors, however, replied that the measures were not part of the country's third bailout program and that they would have to assess the initiatives' fiscal effect before moving forward with plans to ease Greece's debt burden. Eurozone finance ministers also issued statements criticizing Greece's unilateral actions.

The debt relief measures that the creditors had promised Greece were not particularly significant but would have served as potent political symbols for the ruling Syriza party. Syriza told voters that austerity measures would be necessary if Greece hoped to receive relief for its debt, which currently exceeds 175 percent of gross domestic product. But in recent months, Syriza's popularity has declined while the main opposition party, the conservative New Democracy, is polling strongly. Tsipras needs as many concessions as possible from creditors to sustain his popularity. At the same time, unilateral measures like the tax and pension announcements are also meant to signal to voters that Athens can still decide its own policies.

To complicate things further, Greece is caught in the middle of a political dispute between the European Union and the International Monetary Fund (IMF). The IMF believes that the terms of Greece's bailout program — which stipulate that Athens must reach a budget surplus of 3.5 percent of its GDP after 2018 — are unrealistic. It also believes that Greece's debt is not sustainable and recently said the program was "unfriendly to growth." The European Union, however, has defended the bailout, and some countries, most notably Germany, say that Greece should only be given substantial debt relief after the program expires in mid-2018. Though the IMF decided last year not to participate in Greece's bailout program, the German government has promised parliament that the institution would join at some point. German lawmakers see the IMF as less politically biased than EU institutions.

In recent weeks, Greek media have alleged that the Syriza government may resign over its deepening tensions with creditors. Considering that Syriza's re-election would not be guaranteed in the event of an early vote, the party is likely to avoid elections for as long as possible. Tsipras will use the Dec. 15 EU Council summit to try to reach an agreement with the bloc's main political players, Germany and France. Still, if friction between Greece and its creditors increases, early elections cannot be ruled out.

So far, Greece's bailout is on track, and the country has received the first tranches of funding. But the current tensions raise questions about the credibility and long-term prospects of economic reform in the country. A delay in the completion of the creditors' review would also delay Greece's participation in the European Central Bank's quantitative easing program, which would allow the institution to purchase Greek debt. The European Central Bank has said it will not purchase Greek debt until it receives assurances about the country's debt sustainability from the eurozone governments, something Athens was hoping would happen before the end of the year.