Alexis Tsipras pledges to rip up Greece’s 130 billion euro bail-out deal

Athens was due to itemise 11 billion euros in government cuts by June in order
to receive the next 5 billion euro instalment of its loan, but that too is
likely to be delayed.

New elections by the middle of June are considered more likely than not after
angry voters scattered to several smaller parties, ranging from Leftists to
an extreme Right group blamed for street attacks against immigrants.

The prospect of an outright winner in a second poll currently appears dim.

Mr Tsipras has until the end of tomorrow [Thurs] to form a coalition but
senior party members admitted privately it will be near impossible for him
to summon a 151 majority in the 300-seat parliament.

An immovable stumbling block is the Communist Party of Greece, which refuses
to ally with any pro-EU blocs. Despite the tough anti-austerity rhetoric,
Syriza wants Greece to stay in the eurozone.

Mr Tsipras, a 37-year-old former Athens town councillor, challenged Evangelos
Venizelos, leader of the socialist Pasok, and Antonis Samaras, the head of
conservative New Democracy, to renege on the austerity pledges they made to
secure the bail-out late last year.

Greece’s condition has only worsened since, with unemployment rising to 22 per
cent and the economy entering a fifth consecutive year of recession.

This appeared to be an attempt to bring Pasok to the negotiating table, or
perhaps attract some of its members into an alliance after the next election.

Mr Samaras swiftly refused to put pen to paper. “He is asking me to put
my signature to the destruction of Greece. I won’t do this,” he said.

Mr Venizelos also rejected the challenge but did not rule out working with
Syriza. His meeting with Mr Tsipras today, he said, would be “substantive
and meaningful”.

He added that a national unity government with the participation of all
parties with a pro-European orientation was the only solution.

Yiannis Bournous, a senior ally of Mr Tsipras, said Greeks had delivered a
message to Angela Merkel, the German chancellor, and the International
Monetary Fund that “super-austerity policies are reaching a dead end in
Europe”.

“They either choose radical change of policy or collapse whenever they
have elections,” he told The Daily Telegraph.

“This is not a Greek crisis, but a European and global crisis of
neoliberal capitalism,” said Mr Bournos, 32, a member of the executive
board of the European Left group in the European parliament.

He said Greek government funds would be used to keep the country functioning,
not pay profitmaking interest rates.

“If the dilemma is wages and pensions or lenders, there is no choice. We
have to stop our country collapsing,” he said.

With warnings continuing from Brussels that Greece should stick to the path of
tough reforms, such bravado provoked dismay among economists.

Angelos Tsakanikas, head of research at the Institute for Economic and
Industrial Research in Athens, said the vote for anti-bail-out parties
signalled that “people have not understood clearly what the stakes are”.

“If the bail-out stops and we can’t retrieve any more money, what are the
alternatives? We still have a primary deficit. Our revenues are still below
our expenses.”

Stavros Ligeros, a columnist with Kathimerini daily, said parties opposing the
bail-out were “protesting parties and part of the political system that
is collapsing”.

“Greece is in a transition state. The old is dying and the new has not
yet been born,” he added.

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