The far-left Syriza party, which won Greeces general election on Sunday, has formed an anti-austerity governing coalition with the right-wing party Greek Independents. The coalition will have a comfortable majority in Greeces new parliament. Syriza leader Alexis Tsipras has vowed to renegotiate Greeces bailout, worth €240bn (£179bn; $268bn), to end Greeces humiliation and pain. Several European politicians have warned him to respect bailout terms. The BBCs full coverage of the reaction can be found here. The euro recovered from an 11-year low against the US dollar as investors digested what Syrizas victory means for the eurozones future. Europes main share markets also rose - after initial falls - on hopes that a compromise over Greeces bailout terms might be found. With nearly all of the votes counted in Sundays poll, Syriza looks set to have 149 seats, just two short of an absolute majority. The Greek Independents are projected to have 13 seats in the 300-seat parliament. The election result is expected to be one of the main issues at Mondays meeting of 19 eurozone finance ministers. Sundays result means that a majority of voters in Greece have essentially rejected a core policy for dealing with the eurozone crisis as devised by Brussels and Germany, the BBCs Gavin Hewitt in Athens says. The troika of lenders that bailed out Greece - the European Union, European Central Bank, and International Monetary Fund - imposed big budgetary cuts and restructuring in return for the bailout money. But the man tipped to become the new Greek finance minister Yanis Varoufakis, told the BBC the austerity regime had been fiscal waterboarding policies that have turned Greece into a debt colony. The economy has shrunk drastically since the 2008 global financial crisis, and increasing unemployment has thrown many Greeks into poverty. On Sunday, Mr Tsipras told jubilant supporters he wanted to write off half of Greeces debt, but was ready to negotiate a viable solution and wants the country to stay in the eurozone. Analysis: Chris Morris, BBC News, Athens Alexis Tsipras says he is willing to negotiate with Greeces European partners. The question is: how much are they prepared to compromise with him? There are some things during the eurozone crisis that we were told would never happen. The European Central Bank would never flood the market with new money, and Greece would never take a gamble with the radical left. The past few days have overturned those assumptions, making this week a potential turning point in the recent history of the European Union. A turning point for the EU? Tears of joy at Syriza party What next? Peston: Why are markets not panicking? However, a number of European politicians have warned Greeces new leaders to abide by the deals the country has signed. Arriving for the meeting in Brussels, the chairman of the Eurogroup, Jeroen Dijsselbloem, told reporters: There is very little support for a write off in Europe. The most important thing is that if you remain in the eurozone you stick to the rules we have. Mr Dijsselbloem said the possibility of a further extension of the bailout - which runs out at the end of February - was on the agenda of the Eurogroup meeting. German Chancellor Angela Merkels spokesman also said Greece had to stick to its previous commitments. Belgian Finance Minister Johan Van Overtveld was quoted by VRT network as saying that Greece must respect the rules of monetary union, although he added that there was room for some flexibility. UK Chancellor of the Exchequer (Finance Minister) George Osborne told the BBC Syrizas promises would be very difficult to deliver, and incompatible with what the eurozone currently demands. Italys EU Affairs Minister Sandro Gozi sounded a more positive note, speaking of new opportunities to pursue change in Europe to create growth and investment and fight against unemployment. Who are Syriza and what do they stand for? • An acronym meaning the Radical Coalition of the Left, Syriza was formed in 2004 as an umbrella group • Led by 40-year-old Alexis Tsipras • The party first came to prominence following the 2008 Greek riots • It promises an end to Greeces painful austerity measures and wants to renegotiate its debt • Markets worry about a Greek debt default and a possible exit from the eurozone, though Syriza says it wants to keep the euro
Posted on: Mon, 26 Jan 2015 12:49:57 +0000
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