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| Greek elections: Tsipras sworn in as prime minister, as Brussels blasts coalition | Greek elections: Tsipras sworn in as prime minister, as Brussels blasts coalition |
| (4 months later) | |
| 6.34pm BST | |
| 18:34 | |
| Helena Smith | Helena Smith |
| As Alexis Tsipras becomes prime minister for the second time, the mood on the streets of Athens is hardly euphoric. Helena Smith reports: | As Alexis Tsipras becomes prime minister for the second time, the mood on the streets of Athens is hardly euphoric. Helena Smith reports: |
| A huge storm, violent, dark and loud rumbled through Greece on Monday, thunder and lightning skittering through the skies. After Sunday’s general elections it was not lost on many: in Athens residents saw in the tempest a perfect metaphor, an omen even, that the old was finally being washed away. | A huge storm, violent, dark and loud rumbled through Greece on Monday, thunder and lightning skittering through the skies. After Sunday’s general elections it was not lost on many: in Athens residents saw in the tempest a perfect metaphor, an omen even, that the old was finally being washed away. |
| “People voted for change, for what they believed would be a fresh start,” said Lefteris Pavlis who owns a chain of eateries in the city centre. “They voted to give Alexis Tsipras a second chance which says a lot about the state of the opposition.” | “People voted for change, for what they believed would be a fresh start,” said Lefteris Pavlis who owns a chain of eateries in the city centre. “They voted to give Alexis Tsipras a second chance which says a lot about the state of the opposition.” |
| And yet the triumphant return to power of the young leftist and his Syriza party – this time pledging to overturn the old order of corruption, cronyism and vested interests - was not uppermost in the minds of most. What was uppermost was the daily grind of living. | And yet the triumphant return to power of the young leftist and his Syriza party – this time pledging to overturn the old order of corruption, cronyism and vested interests - was not uppermost in the minds of most. What was uppermost was the daily grind of living. |
| “There are problems,” sighed Vangelis Evangelides who sells nuts in the narrow streets beneath the ancient Acropolis. “Lots of problems. Will Syriza be able to solve them?” he shrugged. “Let’s hope they can.” | “There are problems,” sighed Vangelis Evangelides who sells nuts in the narrow streets beneath the ancient Acropolis. “Lots of problems. Will Syriza be able to solve them?” he shrugged. “Let’s hope they can.” |
| Almost six years into their worst financial crisis in modern times Greeks are exhausted, weary of self-examination, worn down by economic and political uncertainty and the depredations of austerity. | Almost six years into their worst financial crisis in modern times Greeks are exhausted, weary of self-examination, worn down by economic and political uncertainty and the depredations of austerity. |
| On the streets Monday, outside banks and kiosks and shops, the mood, if anything, was strangely sombre. “What election?” quipped Panagiotis Katsanos who runs a kiosk on Mitropoleos street in Athens’ city centre. From 7 am to 1 pm around 150 people had stopped by to say ‘good morning’ or buy cigarettes, newspapers and soft-drinks but not a single person had mentioned the election. “I’m telling you not one person,” he exclaimed. “Nobody cares because the feeling is they are all the same, they all tell lies, so what’s the difference.” | On the streets Monday, outside banks and kiosks and shops, the mood, if anything, was strangely sombre. “What election?” quipped Panagiotis Katsanos who runs a kiosk on Mitropoleos street in Athens’ city centre. From 7 am to 1 pm around 150 people had stopped by to say ‘good morning’ or buy cigarettes, newspapers and soft-drinks but not a single person had mentioned the election. “I’m telling you not one person,” he exclaimed. “Nobody cares because the feeling is they are all the same, they all tell lies, so what’s the difference.” |
| In the vegetable stalls off Athinas street, vendors echoed that view. “Ten people this morning have had me weigh olives,” said Tassos Kounoupiotis. “We have got to that point where money is so tight. Politics and politicians belong to another world.” | In the vegetable stalls off Athinas street, vendors echoed that view. “Ten people this morning have had me weigh olives,” said Tassos Kounoupiotis. “We have got to that point where money is so tight. Politics and politicians belong to another world.” |
| It was clear as pollsters took stock of the election result that voter apathy – the force behind an abstention rate that at almost 44% reached a record high – has now become the reality of Greece. Tsipras is the fifth prime minister to be voted into office since the crisis began. In winning his gamble for a fresh, four-year mandate he has emerged as the dominant figure in Greek political life but for many his victory does not reflect them. | It was clear as pollsters took stock of the election result that voter apathy – the force behind an abstention rate that at almost 44% reached a record high – has now become the reality of Greece. Tsipras is the fifth prime minister to be voted into office since the crisis began. In winning his gamble for a fresh, four-year mandate he has emerged as the dominant figure in Greek political life but for many his victory does not reflect them. |
| That, say analysts, will make implementation of the draconian reforms international creditors are demanding in return for a third rescue programme of €86bn in bailout funds harder still. The snap poll saw very little discussion of the spending cuts and reforms the new administration will now have to embark on. A Greek default and ejection from the euro zone will loom if they are not enforced, | That, say analysts, will make implementation of the draconian reforms international creditors are demanding in return for a third rescue programme of €86bn in bailout funds harder still. The snap poll saw very little discussion of the spending cuts and reforms the new administration will now have to embark on. A Greek default and ejection from the euro zone will loom if they are not enforced, |
| “It was incredible that a man who betrayed every single promise he ever made, who oversaw a period where the banks were closed and capital controls were enforced, who played such a big part in worsening the economy, was again voted in so spectacularly,” said Plavlis. “The controls have eased it’s true, but every small business is having a really hard time,” he lamented. | “It was incredible that a man who betrayed every single promise he ever made, who oversaw a period where the banks were closed and capital controls were enforced, who played such a big part in worsening the economy, was again voted in so spectacularly,” said Plavlis. “The controls have eased it’s true, but every small business is having a really hard time,” he lamented. |
| But, he said, it was undeniable that the era of Tsipras was now upon Greece. | But, he said, it was undeniable that the era of Tsipras was now upon Greece. |
| “He has promised the sun will shine there are a lot of people out there who are going to be hoping today’s storm isn’t his first broken promise.” | “He has promised the sun will shine there are a lot of people out there who are going to be hoping today’s storm isn’t his first broken promise.” |
| On that note, we’ll close up for the evening. Thanks for all your comments, and we’ll be back again tomorrow. | On that note, we’ll close up for the evening. Thanks for all your comments, and we’ll be back again tomorrow. |
| Updated | |
| at 6.39pm BST | |
| 6.10pm BST | |
| 18:10 | |
| Meanwhile Alexis Tsipras has officially been sworn in as prime minister. | Meanwhile Alexis Tsipras has officially been sworn in as prime minister. |
| Alexis Tsipras takes his oath of office from President Prokopis Pavlopoulos pic.twitter.com/rDe13IekUJ | Alexis Tsipras takes his oath of office from President Prokopis Pavlopoulos pic.twitter.com/rDe13IekUJ |
| 6.03pm BST | |
| 18:03 | |
| Former Greek finance minister Yanis Varoufakis said the real winner in the weekend election is the troika of creditors, the ECB, EU and IMF. Writing in the Guardian he says: | Former Greek finance minister Yanis Varoufakis said the real winner in the weekend election is the troika of creditors, the ECB, EU and IMF. Writing in the Guardian he says: |
| During the past five years, troika-authored bills made it through parliament on ultra-slim majorities, giving their authors sleepless nights. Now, the bills necessary to prop up the third bailout will pass with comfortable majorities, as Syriza is committed to them. Almost every opposition MP (with the exception of the communists of KKE and the Nazis of Golden Dawn) is also on board. | During the past five years, troika-authored bills made it through parliament on ultra-slim majorities, giving their authors sleepless nights. Now, the bills necessary to prop up the third bailout will pass with comfortable majorities, as Syriza is committed to them. Almost every opposition MP (with the exception of the communists of KKE and the Nazis of Golden Dawn) is also on board. |
| Of course, to get to this point Greek democracy has had to be deeply wounded (1.6 million Greeks who voted in the July referendum did not bother to turn up at the polling stations on Sunday) – no great loss to bureaucrats in Brussels, Frankfurt and Washington DC for whom democracy appears, in any case, to be a nuisance. | Of course, to get to this point Greek democracy has had to be deeply wounded (1.6 million Greeks who voted in the July referendum did not bother to turn up at the polling stations on Sunday) – no great loss to bureaucrats in Brussels, Frankfurt and Washington DC for whom democracy appears, in any case, to be a nuisance. |
| Tsipras must now implement a fiscal consolidation and reform programme that was designed to fail. Illiquid small businesses, with no access to capital markets, have to now pre-pay next year’s tax on their projected 2016 profits. Households will need to fork out outrageous property taxes on non-performing apartments and shops, which they can’t even sell. VAT rate hikes will boost VAT evasion. Week in week out, the troika will be demanding more recessionary, antisocial policies: pension cuts, lower child benefits, more foreclosures. | Tsipras must now implement a fiscal consolidation and reform programme that was designed to fail. Illiquid small businesses, with no access to capital markets, have to now pre-pay next year’s tax on their projected 2016 profits. Households will need to fork out outrageous property taxes on non-performing apartments and shops, which they can’t even sell. VAT rate hikes will boost VAT evasion. Week in week out, the troika will be demanding more recessionary, antisocial policies: pension cuts, lower child benefits, more foreclosures. |
| The prime minister’s plan for weathering this storm is founded on three pledges. First the agreement with the troika is unfinished business, leaving room for further negotiation of important details; second, debt relief will follow soon; and third Greece’s oligarchs will be tackled. Voters supported Tsipras because he appeared the most likely candidate to deliver on these promises. The trouble is, his capacity to do so is severely circumscribed by the agreement he has already signed. | The prime minister’s plan for weathering this storm is founded on three pledges. First the agreement with the troika is unfinished business, leaving room for further negotiation of important details; second, debt relief will follow soon; and third Greece’s oligarchs will be tackled. Voters supported Tsipras because he appeared the most likely candidate to deliver on these promises. The trouble is, his capacity to do so is severely circumscribed by the agreement he has already signed. |
| More here: | More here: |
| Related: The lenders are the real winners in Greece – Alexis Tsipras has been set up to fail | Yanis Varoufakis | Related: The lenders are the real winners in Greece – Alexis Tsipras has been set up to fail | Yanis Varoufakis |
| 5.15pm BST | |
| 17:15 | |
| European markets edge higher | European markets edge higher |
| The victory by Alexis Tsipras in Greece’s election at the weekend does not seemed to have spooked the markets, but nor has it enthused them much either. In fact it was Wall Street’s recovery from Friday’s Federal Reserve-induced losses that provided much of the support for shares during the day. The closing scores showed: | The victory by Alexis Tsipras in Greece’s election at the weekend does not seemed to have spooked the markets, but nor has it enthused them much either. In fact it was Wall Street’s recovery from Friday’s Federal Reserve-induced losses that provided much of the support for shares during the day. The closing scores showed: |
| On Wall Street the Dow Jones Industrial Average is currently up nearly 80 points or 0.5%. | On Wall Street the Dow Jones Industrial Average is currently up nearly 80 points or 0.5%. |
| 4.21pm BST | |
| 16:21 | |
| #Tsipras walking to the President's Mansion. He seems determined alright #GreekElections #Greece @BILD pic.twitter.com/qjzBYop9Sf | #Tsipras walking to the President's Mansion. He seems determined alright #GreekElections #Greece @BILD pic.twitter.com/qjzBYop9Sf |
| 4.17pm BST | |
| 16:17 | |
| One of the newly elected EK (Centrist Union) MPs is Anastasios Megalomystakas. Which literally means "Rising from The Dead Great Moustache". | One of the newly elected EK (Centrist Union) MPs is Anastasios Megalomystakas. Which literally means "Rising from The Dead Great Moustache". |
| 3.50pm BST | |
| 15:50 | |
| Back with Greece, and Alexis Tsipras does not have long to wait to regain his role as prime minister: | Back with Greece, and Alexis Tsipras does not have long to wait to regain his role as prime minister: |
| SYRIZA's Tsipras to be given mandate to form government at 18:00, be sworn in as PM at 20:00 http://t.co/m9JA4a2O1Q pic.twitter.com/K5aLcIhHSP | SYRIZA's Tsipras to be given mandate to form government at 18:00, be sworn in as PM at 20:00 http://t.co/m9JA4a2O1Q pic.twitter.com/K5aLcIhHSP |
| (These are local times). | (These are local times). |
| 3.36pm BST | |
| 15:36 | |
| Part of the reason for the rise in US markets could be weak housing figures, which would add to the general feeling that a rate rise this year may not actually materialise. Connor Campbell, financial analyst at Spreadex, said: | Part of the reason for the rise in US markets could be weak housing figures, which would add to the general feeling that a rate rise this year may not actually materialise. Connor Campbell, financial analyst at Spreadex, said: |
| It is debatable whether the miss in US existing home sales, down to 5.31m against the 5.5m expected, helped the US indices with their gains; traditionally in 2015 weak American data has been a boost to the markets, but the violent reaction to the Fed’s decision to keep rates the same last week complicates the bad data/strong Dow relationship that had been so strong this year. Yet it is likely that there has been a slight correction in regards to last Friday’s fall, helping the Dow Jones to tentatively re-cross the 16500 mark. | It is debatable whether the miss in US existing home sales, down to 5.31m against the 5.5m expected, helped the US indices with their gains; traditionally in 2015 weak American data has been a boost to the markets, but the violent reaction to the Fed’s decision to keep rates the same last week complicates the bad data/strong Dow relationship that had been so strong this year. Yet it is likely that there has been a slight correction in regards to last Friday’s fall, helping the Dow Jones to tentatively re-cross the 16500 mark. |
| 3.33pm BST | |
| 15:33 | |
| Wall Street rises in early trading | Wall Street rises in early trading |
| A quick look at the markets. | A quick look at the markets. |
| Wall Street has recovered some of the losses it suffered on Friday, following the news that the Federal Reserve had kept interest rates on hold and was concerned about the state of the global economy, particularly China. | Wall Street has recovered some of the losses it suffered on Friday, following the news that the Federal Reserve had kept interest rates on hold and was concerned about the state of the global economy, particularly China. |
| Ahead of a raft of Fed members speaking this week, the Dow Jones Industrial Average is currently nearly 150 points or 0.9% higher. | Ahead of a raft of Fed members speaking this week, the Dow Jones Industrial Average is currently nearly 150 points or 0.9% higher. |
| In Europe the FTSE 100 is up 0.27%, hit by the news that a tie-up between Zurich and RSA Insurance has fallen apart, leaving RSA shares 21% lower. | In Europe the FTSE 100 is up 0.27%, hit by the news that a tie-up between Zurich and RSA Insurance has fallen apart, leaving RSA shares 21% lower. |
| Germany’s Dax is virtually flat, up just 0.06% while France’s Cac has climbed 0.91%. | Germany’s Dax is virtually flat, up just 0.06% while France’s Cac has climbed 0.91%. |
| In Athens, the market is down 0.58% following Alexis Tsipras’ election victory. | In Athens, the market is down 0.58% following Alexis Tsipras’ election victory. |
| 3.28pm BST | |
| 15:28 | |
| And here are the final results of the Greek election: | And here are the final results of the Greek election: |
| Here's one to hang on the wall #Greece pic.twitter.com/PPE6s9n07T | Here's one to hang on the wall #Greece pic.twitter.com/PPE6s9n07T |
| 3.22pm BST | |
| 15:22 | |
| Helena Smith | Helena Smith |
| Is another show down between Athens and Europe on the horizon before the new government is even sworn in? The Independent Greeks party has just issued a withering statement in response to remarks made earlier by the president of the European parliament Martin’s Schulz, reports Helena Smith in Athens. | Is another show down between Athens and Europe on the horizon before the new government is even sworn in? The Independent Greeks party has just issued a withering statement in response to remarks made earlier by the president of the European parliament Martin’s Schulz, reports Helena Smith in Athens. |
| The German has repeatedly said that he (and others) would have preferred Syriza to have teamed up with parties from the centre left such as To Potami. This morning, he admitted calling Tsipras to ask “why he was continuing a coalition with this strange, far-right party.” | The German has repeatedly said that he (and others) would have preferred Syriza to have teamed up with parties from the centre left such as To Potami. This morning, he admitted calling Tsipras to ask “why he was continuing a coalition with this strange, far-right party.” |
| Admonishing Schulz for the intervention, the Independent Greeks have now implied that the European Parliament president is being funded by defence industries! | Admonishing Schulz for the intervention, the Independent Greeks have now implied that the European Parliament president is being funded by defence industries! |
| “Once again we express our sadness at Mr Schulz’s lack of respect for the institution that he serves with his interventions in the internal affairs of a country,” the statement said. “Beyond insulting the Greek people and the party of Independent Greeks, he must, at last, understand that he cannot, without consequence, call any party that doesn’t take commissions from the defence industries that fund him “extreme right.” | “Once again we express our sadness at Mr Schulz’s lack of respect for the institution that he serves with his interventions in the internal affairs of a country,” the statement said. “Beyond insulting the Greek people and the party of Independent Greeks, he must, at last, understand that he cannot, without consequence, call any party that doesn’t take commissions from the defence industries that fund him “extreme right.” |
| The Independent Greeks are conservative, nationalist and have close links with the Greek Orthodox church. Party leader Panos Kammenos once famously put down the failure of Greeks to revolt against austerity to secret mind-altering substances being sprayed over them (by who we do not know). | The Independent Greeks are conservative, nationalist and have close links with the Greek Orthodox church. Party leader Panos Kammenos once famously put down the failure of Greeks to revolt against austerity to secret mind-altering substances being sprayed over them (by who we do not know). |
| The two parties differ on issues ranging from immigration, the state’s contentious relationship with the Church and gay rights (to name but a few) but Syriza cadres, a mixture of Marxists, greens, Maoists and old-style socialists say the alliance between the two went very well during their first term in office. | The two parties differ on issues ranging from immigration, the state’s contentious relationship with the Church and gay rights (to name but a few) but Syriza cadres, a mixture of Marxists, greens, Maoists and old-style socialists say the alliance between the two went very well during their first term in office. |
| 3.06pm BST | |
| 15:06 | |
| Summary: Tsipras builds new government | Summary: Tsipras builds new government |
| Time for a quick recap of the key points | Time for a quick recap of the key points |
| Nick Fletcher will steer you through the next few hours. | Nick Fletcher will steer you through the next few hours. |
| 3.04pm BST | |
| 15:04 | |
| Alexis Tsipras and Panos Kammenos are all smiles in Athens today, as they finalise their new government. | Alexis Tsipras and Panos Kammenos are all smiles in Athens today, as they finalise their new government. |
| 2.50pm BST | |
| 14:50 | |
| European stock markets have mainly risen today. | European stock markets have mainly risen today. |
| Tsipras’s comprehensive win last night’s has calms fears that another election might be needed this year. | Tsipras’s comprehensive win last night’s has calms fears that another election might be needed this year. |
| As Guy Foster of Brewer Dolphin explains, there is short-term relief, but problems on the horizon. | As Guy Foster of Brewer Dolphin explains, there is short-term relief, but problems on the horizon. |
| Ultimately the return of Tsipras is the safest option in the short run. It means both the government and opposition are committed to ensuring thr terms of the bailout are implemented. (In the long run, however, the unsustainability of Greece’s debt burden is extreme and makes economic porgress incomprehensibly difficult. | Ultimately the return of Tsipras is the safest option in the short run. It means both the government and opposition are committed to ensuring thr terms of the bailout are implemented. (In the long run, however, the unsustainability of Greece’s debt burden is extreme and makes economic porgress incomprehensibly difficult. |
| We expect, therefore, that unless the creditors can find a politically acceptable way of offering debt relief, the Greek crisis will return. | We expect, therefore, that unless the creditors can find a politically acceptable way of offering debt relief, the Greek crisis will return. |
| The German DAX is being dragged back by the scandal that has hit Volkswagen. Its shares have slumped by 20% after it was accused of falsify emissions data. | The German DAX is being dragged back by the scandal that has hit Volkswagen. Its shares have slumped by 20% after it was accused of falsify emissions data. |
| Related: Volkswagen shares plunge after US says carmaker falsified emissions data | Related: Volkswagen shares plunge after US says carmaker falsified emissions data |
| Updated | |
| at 2.50pm BST | |
| 2.42pm BST | |
| 14:42 | |
| Here’s a video clip of Tsipras triumphantly claiming victory last night, for those who didn’t catch it at the time. | Here’s a video clip of Tsipras triumphantly claiming victory last night, for those who didn’t catch it at the time. |
| 2.30pm BST | |
| 14:30 | |
| Juncker: Greece has no time to lose | Juncker: Greece has no time to lose |
| European Commission president Jean-Claude Juncker has put his summer spat with Alexis Tsipras behind them. | European Commission president Jean-Claude Juncker has put his summer spat with Alexis Tsipras behind them. |
| In his letter of congratulation, Juncker vowed to “stand by Greece” and support the new government as it implements the new measures agreed under the bailout. | In his letter of congratulation, Juncker vowed to “stand by Greece” and support the new government as it implements the new measures agreed under the bailout. |
| Juncker added his voice to those urging Tsipras to deliver reforms quickly, and cited the refugee crisis ahead of the emergency meeting of EU leaders on Wednesday night. | Juncker added his voice to those urging Tsipras to deliver reforms quickly, and cited the refugee crisis ahead of the emergency meeting of EU leaders on Wednesday night. |
| Here’s the letter. | Here’s the letter. |
| You might remember that the pair fell out badly in June, after the Greek PM accused creditors of trying to humiliate his country. The Commission president hit back, saying he felt betrayed by Tsipras’s antics. | You might remember that the pair fell out badly in June, after the Greek PM accused creditors of trying to humiliate his country. The Commission president hit back, saying he felt betrayed by Tsipras’s antics. |
| 2.05pm BST | |
| 14:05 | |
| Euclid Tsakalotos expected to keep cabinet place | Euclid Tsakalotos expected to keep cabinet place |
| Over in Athens officials are saying that it is more than likely the former finance minister Euclid Tsakalotos will be given a cabinet role - but they are keeping mum as to what that position will be. | Over in Athens officials are saying that it is more than likely the former finance minister Euclid Tsakalotos will be given a cabinet role - but they are keeping mum as to what that position will be. |
| Our correspondent Helena Smith reports. | Our correspondent Helena Smith reports. |
| Asked about the rumours that he’s been reappointed as FM, one aid told us: | Asked about the rumours that he’s been reappointed as FM, one aid told us: |
| “I think for sure he will be back but in what position nobody knows,”. | “I think for sure he will be back but in what position nobody knows,”. |
| The Oxford-educated economist has repeatedly said that the bailout accord he signed in July is not the best of agreements. “It is a difficult agreement,” he told Star TV as the first exit polls rolled in revealing that the leftists were heading to victory. | The Oxford-educated economist has repeatedly said that the bailout accord he signed in July is not the best of agreements. “It is a difficult agreement,” he told Star TV as the first exit polls rolled in revealing that the leftists were heading to victory. |
| Tsakalotos is a prominent figure in the dissident faction known as the Group of 53 - Syriza cadres who ideologically share many of the beliefs of the breakaway militant Left Platform but in the name of governance support the more pragmatic stance of those coalesced around Tsipras. He reportedly wavered before standing in the elections. | Tsakalotos is a prominent figure in the dissident faction known as the Group of 53 - Syriza cadres who ideologically share many of the beliefs of the breakaway militant Left Platform but in the name of governance support the more pragmatic stance of those coalesced around Tsipras. He reportedly wavered before standing in the elections. |
| It is likely that the British-trained academic - among the few straight talkers on the Greek political scene - will prefer a different post connected to the economy (and the country’s crucial need for investments) but not necessarily in the hot seat of the finance minister. | It is likely that the British-trained academic - among the few straight talkers on the Greek political scene - will prefer a different post connected to the economy (and the country’s crucial need for investments) but not necessarily in the hot seat of the finance minister. |
| George Chouliarakis, another UK-trained economist - he lectured at Manchester University before going into politics - who has won plaudits heading the ministry in the interim government and would likely retain the position if Tsakalotos doesn’t replace him. | George Chouliarakis, another UK-trained economist - he lectured at Manchester University before going into politics - who has won plaudits heading the ministry in the interim government and would likely retain the position if Tsakalotos doesn’t replace him. |
| 1.54pm BST | |
| 13:54 | |
| Fitch: Greek risks still high after Tsipras's victory | Fitch: Greek risks still high after Tsipras's victory |
| Rating agency Fitch has warned that there is still a high risk that Greece’s bailout programme flounders, triggering a new downgrade. | Rating agency Fitch has warned that there is still a high risk that Greece’s bailout programme flounders, triggering a new downgrade. |
| In its first comment on the election, Fitch says: | In its first comment on the election, Fitch says: |
| Greece’s general election looks set to deliver a more cohesive administration with a renewed mandate for the country’s third bailout agreement, slightly reducing risks to programme implementation. | Greece’s general election looks set to deliver a more cohesive administration with a renewed mandate for the country’s third bailout agreement, slightly reducing risks to programme implementation. |
| But the government’s ownership of the programme is likely to remain less than whole-hearted, and its negotiating stance unpredictable. | But the government’s ownership of the programme is likely to remain less than whole-hearted, and its negotiating stance unpredictable. |
| Fitch explains that the first review of the programme, due this autumn, is the most ‘onerous’ | Fitch explains that the first review of the programme, due this autumn, is the most ‘onerous’ |
| It includes contentious pension and tax reforms and a supplementary budget, but its successful completion would unlock at least modest official-sector debt relief, a key goal for the government. | It includes contentious pension and tax reforms and a supplementary budget, but its successful completion would unlock at least modest official-sector debt relief, a key goal for the government. |
| Fitch is particularly worried that Tsipras’s political rhetoric still contains an anti-austerity element, even though Syriza is committed to implement the programme. | Fitch is particularly worried that Tsipras’s political rhetoric still contains an anti-austerity element, even though Syriza is committed to implement the programme. |
| For example, Tsipras said following Sunday’s vote that Greece can recover from its economic crisis “through tough work,” but that “the Greek people are synonymous with resistance and dignity.” | For example, Tsipras said following Sunday’s vote that Greece can recover from its economic crisis “through tough work,” but that “the Greek people are synonymous with resistance and dignity.” |
| So it will be tricky to rebuild trust between Greece and its creditors, and hard to win domestic political and popular backing for the third bailout. | So it will be tricky to rebuild trust between Greece and its creditors, and hard to win domestic political and popular backing for the third bailout. |
| Fitch had upgraded Greece’s rating to ‘CCC’ from ‘CC’ last month, after its bailout was agreed. But it could act again: | Fitch had upgraded Greece’s rating to ‘CCC’ from ‘CC’ last month, after its bailout was agreed. But it could act again: |
| A repeat of the prolonged breakdown in relations between Greece and its creditors leading to another funding crisis could bring the rating back down. | A repeat of the prolonged breakdown in relations between Greece and its creditors leading to another funding crisis could bring the rating back down. |
| A record of successful programme implementation could lead to an upgrade, as could economic recovery, further primary surpluses, and official-sector debt relief. | A record of successful programme implementation could lead to an upgrade, as could economic recovery, further primary surpluses, and official-sector debt relief. |
| Fitch: Greek election broadly credit neutral, risks still high. #Greece #GreekElections #politics #economy | Fitch: Greek election broadly credit neutral, risks still high. #Greece #GreekElections #politics #economy |
| Updated | |
| at 1.57pm BST | |
| 1.41pm BST | |
| 13:41 | |
| Tsipras has also told Syriza officials that the “first big battle” will be the discussions over debt relief. | Tsipras has also told Syriza officials that the “first big battle” will be the discussions over debt relief. |
| Those discussions could start once Greece has passed the first review of its new bailout. | Those discussions could start once Greece has passed the first review of its new bailout. |
| Updated | |
| at 1.42pm BST | |
| 1.37pm BST | |
| 13:37 | |
| Reuters newsflash: Alexis Tsipras has told his party members that the new government’s top priority is to restore stability to the economy, and to the banking system. | Reuters newsflash: Alexis Tsipras has told his party members that the new government’s top priority is to restore stability to the economy, and to the banking system. |
| 1.20pm BST | |
| 13:20 | |
| Greek media are reporting that Euclid Tsakalotos has been reappointed as Greece’s finance minister. | Greek media are reporting that Euclid Tsakalotos has been reappointed as Greece’s finance minister. |
| Tsakalotos to return as Greece's finance minister. (Giving the world more time to pronounce his name correctly) | Tsakalotos to return as Greece's finance minister. (Giving the world more time to pronounce his name correctly) |
| Tsakalotos won plaudits for his brief stint in the role over the summer. He was installed after Yanis Varoufakis resigned, and played a key role in negotiating the third bailout deal at a series of eurogroup crisis meetings. | Tsakalotos won plaudits for his brief stint in the role over the summer. He was installed after Yanis Varoufakis resigned, and played a key role in negotiating the third bailout deal at a series of eurogroup crisis meetings. |
| So it could be a popular appointment with the markets. | So it could be a popular appointment with the markets. |
| #Greece's 5y default probability drops below 60% as Euclid Tsakalotos to be #Greece's FinMin again, DJ reports. pic.twitter.com/qyIjyMa2S0 | #Greece's 5y default probability drops below 60% as Euclid Tsakalotos to be #Greece's FinMin again, DJ reports. pic.twitter.com/qyIjyMa2S0 |
| Updated | |
| at 1.21pm BST | |
| 1.03pm BST | |
| 13:03 | |
| Tsipras meeting with Independent Greeks leader now | Tsipras meeting with Independent Greeks leader now |
| Helena Smith | Helena Smith |
| Over in Athens Alexis Tsipras’ office has announced that the leftist Syriza leader is about hold a meeting his new comrade in arms, Panos Kammenos, our correspondent Helena Smith. | Over in Athens Alexis Tsipras’ office has announced that the leftist Syriza leader is about hold a meeting his new comrade in arms, Panos Kammenos, our correspondent Helena Smith. |
| Tsipras will meet the Independent Greeks party leader at Syriza’s party HQ in Athens form 3pm local time (ie now). | Tsipras will meet the Independent Greeks party leader at Syriza’s party HQ in Athens form 3pm local time (ie now). |
| The new cabinet make-up is expected to be discussed. | The new cabinet make-up is expected to be discussed. |
| At least two former ministers have told Helena they expect to be re-instated to their old posts. One said: | At least two former ministers have told Helena they expect to be re-instated to their old posts. One said: |
| “Our plan is to change everything. To turn everything in the public administration around to get it working efficently.” | “Our plan is to change everything. To turn everything in the public administration around to get it working efficently.” |