Leftist Greek Leader Ready to Walk Away From EU Bailout Deal
The smoldering debate over European austerity flared hotter Tuesday as the left-wing politician trying to form a new Greek government declared that his country is no longer bound by its pledges to impose crippling cutbacks in return for rescue loans.
The comments by Alexis Tsipras flew in the face of EU leaders’ insistence on fiscal discipline and sent the Greek stock market tumbling just two days after Greek voters rejected mainstream pro-austerity politicians. Instead, the people backed a hodgepodge of parties from the Stalinist left to the neo-Nazi right but produced no clear winner in parliament.
Tsipras also demanded an examination of Greece’s still-massive debt and a moratorium on repayment of the part of it that is “onerous,” statements that rattled investors and drove Greek shares down another 3.6 percent on top of Monday’s nearly 7-percent loss. Markets in France, Italy, Germany and the U.S. also fell.
“The pro-bailout parties no longer have a majority in parliament to vote in destructive measures for the Greek people,” said the 38-year-old Tsipras, whose anti-austerity Radical Left Coalition party came second in Sunday’s vote. “The popular mandate clearly renders the bailout agreement invalid.”