Fast TeV variability in blazars: jets in a jet

The fast TeV variability of the blazars Mrk 501 and PKS 2155–304 implies a compact emitting region that moves with a bulk Lorentz factor of Gamma_{em}~100 toward the observer. The Lorentz factor is clearly in excess of the jet Lorentz factors Gamma_j\simless 10 measured on sub-pc scales in these sources. We propose that the TeV emission originates from compact emitting regions that move relativistically {\it within} a jet of bulk Gamma_j~10. This can be physically realized in a Poynting flux-dominated jet. We show that if a large fraction of the luminosity of the jet is prone to magnetic dissipation through reconnection, then material outflowing from the reconnection regions can efficiently power the observed TeV flares through synchrotron-self-Compton emission. The model predicts simultaneous far UV/soft X-ray flares.