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Greek elections: Tsipras to be sworn in as PM again - live updates Greek elections: Tsipras to be sworn in as PM again - live updates
(35 minutes later)
10.28am BST10:28
Günther Oettinger, European Commissioner for energy, has cautioned the new Greek PM that he can’t start backtracking....
EU’s Oettinger Says Greece’s Tsipras Must Deliver On Promises, Stick To Commitments - BBG
10.20am BST10:20
The Greek financial crisis could soon rear up again, if Tsipras cannot get to grips with the huge challenges facing the country.
Michael Jacobides, Associate Professor of Strategy and Entrepreneurship, London Business School, explains:
The current government will need to both push through deep reforms and run the country at a time when liquidity has evaporated, the migrant issue has become explosive, and when big decisions (including bank recapitalization, dealing with Non Performing Loans) are still ahead.
If the new government exhibits the same lack of managerial and administrative competence that we saw in the last few months, trouble will soon rise. Early reports on the government composition are worrisome. Early indications suggest there will be few changes to key ministers, despite significant issues with operational efficiency over the last few months. Barring pleasant surprises, Greece may return to the news headlines sooner than we would wish.
9.55am BST09:55
Ashifa Kassam
The head of Spain’s anti-austerity party, Pablo Iglesias of Podemos, has spoken with Tsipras over the phone to offer his congratulations, Ashifa Kassam reports.
On Sunday night, shortly after right-wing New Democracy conceded defeat, Iglesias took to twitter to congratulate Tsipras, saying:
“The Greek are very clearly saying who they want as prime minister. Congratulations @tsipras_eu. Strength, my friend.”
Hours later, Iglesias relayed his message to Tsipras in a phone conversation.
.@atsipras ya ha recibido la felicitación de @Pablo_Iglesias_ por la victoria del pueblo griego. pic.twitter.com/URLocnmQC0
The Greek election divided Spain’s anti-austerity Podemos party, with Iglesias throwing his support behind Tsipras, while others in the party backed Popular Unity.
Last week two elected Podemos politicians from Andalusia, Jesús Rodríguez and Jesús Romero, travelled to Greece to rally behind the breakaway party of anti-austerity MPs. “Supporting Tsipras now is crazy,” Rodríguez told Spanish news site El Diario.
“Supporting Tsipras will cost us, it’s going to make it tough to win the elections, because what Tsipras did was consolidate the dominant discourse of bipartisanship that there is no alternative, no possibility of change.”
Updated at 9.56am BST
9.48am BST09:489.48am BST09:48
Greece's capital flight 'is over'Greece's capital flight 'is over'
Here’s some welcome news - the flow of capital out Greece which began a year ago appears to have ended.Here’s some welcome news - the flow of capital out Greece which began a year ago appears to have ended.
That’s via Mark Whitehouse of Bloomberg View, who calls it a glimmer of hope for Tsipras.That’s via Mark Whitehouse of Bloomberg View, who calls it a glimmer of hope for Tsipras.
Since the government reached a deal with its European creditors in July, people have started bringing money back into the country.Since the government reached a deal with its European creditors in July, people have started bringing money back into the country.
Let’s be clear: The months of negotiations between Greece and its creditors, and the agreement that ensued, are nothing short of a political and economic fiasco. Europe, and particularly Germany, imposed terms that -- though they include some much-deemed reforms -- will stifle growth in the near term and leave the government even deeper in debt, if the country’s leaders can even follow through. Greece’s economy, which had been poised to start recovering, is now expected to shrink through 2016.Let’s be clear: The months of negotiations between Greece and its creditors, and the agreement that ensued, are nothing short of a political and economic fiasco. Europe, and particularly Germany, imposed terms that -- though they include some much-deemed reforms -- will stifle growth in the near term and leave the government even deeper in debt, if the country’s leaders can even follow through. Greece’s economy, which had been poised to start recovering, is now expected to shrink through 2016.
That said, data from the Greek central bank -- which records a liability for every euro that leaves the country’s banking system -- suggest that the end of the standoff has at least brought a bit of relief.That said, data from the Greek central bank -- which records a liability for every euro that leaves the country’s banking system -- suggest that the end of the standoff has at least brought a bit of relief.
Capital flight from #Greece has reversed: @mrkwhths http://t.co/qsJPAWk0RG /via @BV pic.twitter.com/MHNNTEN3y3 /ht @ecoeurope /cc @ecbCapital flight from #Greece has reversed: @mrkwhths http://t.co/qsJPAWk0RG /via @BV pic.twitter.com/MHNNTEN3y3 /ht @ecoeurope /cc @ecb
9.45am BST09:459.45am BST09:45
Politico has a handy list of the key points from yesterday’s poll.Politico has a handy list of the key points from yesterday’s poll.
9.30am BST09:309.30am BST09:30
The Athens stock market has dipped a little this morning, as Syriza’s surprise victory fails to thrill traders.The Athens stock market has dipped a little this morning, as Syriza’s surprise victory fails to thrill traders.
Piraeus Bank was the biggest gainer, up 4%, but Alpha Bank dropped by 3.4%.Piraeus Bank was the biggest gainer, up 4%, but Alpha Bank dropped by 3.4%.
The main ATG index is down 0.5%, and has ebenThe main ATG index is down 0.5%, and has eben
Fund manager Costis Morianos, head of Athens-based Asset Wise Capital Management, says investors had expected Tsipras to get back in.Fund manager Costis Morianos, head of Athens-based Asset Wise Capital Management, says investors had expected Tsipras to get back in.
He said (via Reuters):He said (via Reuters):
“The market had pretty much discounted a Syriza win and there is some profit taking, but prices are attractive.”“The market had pretty much discounted a Syriza win and there is some profit taking, but prices are attractive.”
The market is down 15% so far this year, having recovered from its lows in July.The market is down 15% so far this year, having recovered from its lows in July.
9.12am BST09:129.12am BST09:12
Wolfango Piccoli of Teneo Intelligence is worried that Tsipras and his Independent Greek (Anel) allies lack the skills to reform the country:Wolfango Piccoli of Teneo Intelligence is worried that Tsipras and his Independent Greek (Anel) allies lack the skills to reform the country:
Another SYRIZA-ANEL deal also means that the cabinet will once more be composed of politicians with limited capacity and competence, as demonstrated before.Another SYRIZA-ANEL deal also means that the cabinet will once more be composed of politicians with limited capacity and competence, as demonstrated before.
While the government can most likely continue to rely on mainstream parties for support during key votes, implementing the approved measures will remain challenging.While the government can most likely continue to rely on mainstream parties for support during key votes, implementing the approved measures will remain challenging.
During the election, Tsipras vowed to improve the bailout deal if he was re-elected. And Piccoli fears ructions between Greece and its lenders, if Tsipras doesn’t take full ownership of the measures.During the election, Tsipras vowed to improve the bailout deal if he was re-elected. And Piccoli fears ructions between Greece and its lenders, if Tsipras doesn’t take full ownership of the measures.
Tsipras has been rewarded for presenting himself as a critic of the bailout, and another deal with ANEL indicates that he will not move on this front.Tsipras has been rewarded for presenting himself as a critic of the bailout, and another deal with ANEL indicates that he will not move on this front.
8.59am BST08:598.59am BST08:59
The failure of the anti-austerity Popular Unity party to hit the 3% vote threshold means that most of Greece’s new MPs will support the new bailout deal (officially at least)The failure of the anti-austerity Popular Unity party to hit the 3% vote threshold means that most of Greece’s new MPs will support the new bailout deal (officially at least)
Two clear positives from Greek elections: - stable coalition - 89% of MPs pro-MoU Everyone happy?Two clear positives from Greek elections: - stable coalition - 89% of MPs pro-MoU Everyone happy?
MoU = memorandum of understanding, the measures Greece agreed with its creditors in return for the third loan deal.MoU = memorandum of understanding, the measures Greece agreed with its creditors in return for the third loan deal.
8.54am BST08:548.54am BST08:54
Hopefully the rain, hail and thunder that just struck Athens isn’t an omen.....Hopefully the rain, hail and thunder that just struck Athens isn’t an omen.....
This does not look like the sunny future Syriza promised #ekloges2015_round2 #GreekElections pic.twitter.com/b9oGIN2nBmThis does not look like the sunny future Syriza promised #ekloges2015_round2 #GreekElections pic.twitter.com/b9oGIN2nBm
Updated at 8.54am BSTUpdated at 8.54am BST
8.48am BST08:488.48am BST08:48
Alexis Tsipras’s “surprisingly convincing victory” means that the Greek drama is relegated to the sidelines again, says Marc Ostwald of ADM Investor Services.Alexis Tsipras’s “surprisingly convincing victory” means that the Greek drama is relegated to the sidelines again, says Marc Ostwald of ADM Investor Services.
Syriza’s January election victory was clearly more a function of wanting to get rid of the establishment parties associated with crony capitalism and corruption, rather than vote against “austerity”.Syriza’s January election victory was clearly more a function of wanting to get rid of the establishment parties associated with crony capitalism and corruption, rather than vote against “austerity”.
8.46am BST08:468.46am BST08:46
Greek bonds strengthen after Tsipras winGreek bonds strengthen after Tsipras win
In the bond market, Greece’s sovereign debt is strengthening in value as traders react to the election result.In the bond market, Greece’s sovereign debt is strengthening in value as traders react to the election result.
This has pushed down the yield on Greek two-year debt, from 10.9% to 10.55%. Lower yields mean higher prices, indicating the debt is seen as a safer bet.This has pushed down the yield on Greek two-year debt, from 10.9% to 10.55%. Lower yields mean higher prices, indicating the debt is seen as a safer bet.
8.37am BST08:378.37am BST08:37
Tsipras’s success hasn’t had much impact on the euro, which is trading flat against the US dollar at $1.1313.Tsipras’s success hasn’t had much impact on the euro, which is trading flat against the US dollar at $1.1313.
Simon Smith, chief economist at the currency trader FxPro, explainsSimon Smith, chief economist at the currency trader FxPro, explains
“In the wider picture, it’s not going to make life any easier for the likes of the EU, IMF and European Central Bank and the negotiations surrounding debt sustainability over the coming months.”“In the wider picture, it’s not going to make life any easier for the likes of the EU, IMF and European Central Bank and the negotiations surrounding debt sustainability over the coming months.”
8.28am BST08:288.28am BST08:28
Here’s the result, with just a few tens of thousands of votes still to be counted.Here’s the result, with just a few tens of thousands of votes still to be counted.
8.19am BST08:198.19am BST08:19
Several eurozone politicians have already congratulated Tsipras on his victory, including French president Francois Hollande and eurogroup chief Jeroen Dijsselbloem.Several eurozone politicians have already congratulated Tsipras on his victory, including French president Francois Hollande and eurogroup chief Jeroen Dijsselbloem.
But they may also be concerned that the new Greek government’s majority actually be narrower than the old one.But they may also be concerned that the new Greek government’s majority actually be narrower than the old one.
Robin Bew of the Economist Intelligence Unit predicts more instability.Robin Bew of the Economist Intelligence Unit predicts more instability.
Syriza biggest party in #Greece election, as our team predicted. But coalition with Anel only just over line. Unstable Gov againSyriza biggest party in #Greece election, as our team predicted. But coalition with Anel only just over line. Unstable Gov again
But there’s a big difference this time -- Syriza has shed its most radical element, the Left Platform. They split off to form Popular Unity, but have failed to win enough votes to get into parliament.But there’s a big difference this time -- Syriza has shed its most radical element, the Left Platform. They split off to form Popular Unity, but have failed to win enough votes to get into parliament.
8.07am BST08:078.07am BST08:07
We should remembered that turnout at yesterday’s election hit a record low:We should remembered that turnout at yesterday’s election hit a record low:
Tsipras's personal vindication tempered by fact turnout was just 56.5% & SYRIZA lost about 300k votes since Jan (more than ND) #GreeceTsipras's personal vindication tempered by fact turnout was just 56.5% & SYRIZA lost about 300k votes since Jan (more than ND) #Greece
8.02am BST08:028.02am BST08:02
Tsipras’s new government will have to move quickly to overhaul the Greek economy.Tsipras’s new government will have to move quickly to overhaul the Greek economy.
As my colleague Jon Henley explains, the first review of Greece new cash-for-reforms deal is subject to quarterly reviews, with the first due next month.As my colleague Jon Henley explains, the first review of Greece new cash-for-reforms deal is subject to quarterly reviews, with the first due next month.
The new government’s first task – with a new €3bn tranche of aid at stake – will be to revise the 2015 budget to take into account major pension and income tax reforms. It must also finalise a procedure to recapitalise Greek banks by December and move fast to remove capital controls imposed earlier this summer to prevent a full-blown bank run.The new government’s first task – with a new €3bn tranche of aid at stake – will be to revise the 2015 budget to take into account major pension and income tax reforms. It must also finalise a procedure to recapitalise Greek banks by December and move fast to remove capital controls imposed earlier this summer to prevent a full-blown bank run.
Here’s Jon’s latest dispatch from Athens:Here’s Jon’s latest dispatch from Athens:
Related: Tsipras to form new Greek government after Syriza election triumphRelated: Tsipras to form new Greek government after Syriza election triumph
7.50am BST07:507.50am BST07:50
Introduction: The dust settles in GreeceIntroduction: The dust settles in Greece
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
For most politicians, failing to deliver on your election promises, imposing crippling capital controls, and nearly leading your country out of the euro would have career-limiting consequences.For most politicians, failing to deliver on your election promises, imposing crippling capital controls, and nearly leading your country out of the euro would have career-limiting consequences.
But not for Alexis Tsipras, one of the most remarkable and durable leaders to have graced European politics in recent years.But not for Alexis Tsipras, one of the most remarkable and durable leaders to have graced European politics in recent years.
Sunday’s general election has seen Tsipras gallop back to power, defying prediction and the pollsters again.Sunday’s general election has seen Tsipras gallop back to power, defying prediction and the pollsters again.
Related: Greek election live: Alexis Tsipras celebrates victory - as it happenedRelated: Greek election live: Alexis Tsipras celebrates victory - as it happened
With 99% of the votes counted, Tsipras is guaranteed to have won 145 seats in the Greek parliament.With 99% of the votes counted, Tsipras is guaranteed to have won 145 seats in the Greek parliament.
He’s set to form a second coalition with the Independent Greeks, who have got 10 seats, giving a majority of just 5 in the Greek parliament.He’s set to form a second coalition with the Independent Greeks, who have got 10 seats, giving a majority of just 5 in the Greek parliament.
Alexis Tsipras to be sworn in as PM tonight, new cabinet to take oath tomorrow #greeceAlexis Tsipras to be sworn in as PM tonight, new cabinet to take oath tomorrow #greece
Last night’s celebrations were more muted than in January, given Greece has now signed up to a third bailout, laced with the sort of austerity Tsipras had once promised to consign to history.Last night’s celebrations were more muted than in January, given Greece has now signed up to a third bailout, laced with the sort of austerity Tsipras had once promised to consign to history.
So now, the hard work starts -- the new PM must now implement the measures agreed with Greece’s creditors, from labour market reform to bank recapitalisation.So now, the hard work starts -- the new PM must now implement the measures agreed with Greece’s creditors, from labour market reform to bank recapitalisation.
If you missed yesterday’s action, here’s our latest story:If you missed yesterday’s action, here’s our latest story:
Greek general election: Syriza returns to powerGreek general election: Syriza returns to power
Syriza returns to power in Greek general election http://t.co/APkbs51sEJ @HelenaSmithGDN @graemewearden pic.twitter.com/rx9TRePStKSyriza returns to power in Greek general election http://t.co/APkbs51sEJ @HelenaSmithGDN @graemewearden pic.twitter.com/rx9TRePStK
We’ll be tracking reaction to the Greek vote, and other key events through the day....We’ll be tracking reaction to the Greek vote, and other key events through the day....
Updated at 7.51am BSTUpdated at 7.51am BST