The continued political uncertainty will further undermine confidence among
Greece’s international creditors, not least because Mr Tsipras will remain a
key figure on the political scene.
His party could come first in the next election or do well enough to form a
Left-wing coalition intent on tearing up the bail-out and nationalising
Greek banks.
Riding high on a surge of anti-austerity sentiment in Greece and France, the
charismatic Mr Tsipras even sought a meeting with François Hollande, the
French socialist president-elect. Reports said Mr Tsipras was rebuffed on
grounds of protocol because he is merely a party leader and not head of
state.
The rising star of Greek politics, he dismayed officials in Brussels by
stating in writing that the rescue plan was unacceptably harsh for the Greek
people, who are enduring a fifth year of recession and 22 per cent
unemployment.
Senior figures in Germany, the biggest contributing country to the bail-out,
reacted firmly to the strident statements by the 37-year old former
Communist.
Klaus-Peter Willsch, a close ally of Chancellor Angela Merkel, said: “We
should offer Greece a controlled exit from the eurozone, without withdrawing
from the European Union. The dogma that no country is allowed to leave the
eurozone has already caused too much damage to European policy.”
Guido Westerwelle, the German foreign minister, warned that the next loan to
Greece could be withheld if it failed to keep its promises, which include
identifying another €11 billion in savings by next month. “If
Greece ends the reform process it has undertaken, then I can’t see that the
respective tranches [of aid] can be paid out,” he said.
However, Angela Merkel, the German chancellor, stressed she still wants to
keep Greece in the eurozone.
“I have always wanted to solve (the debt crisis) in such a way that
Greece remains a member of the eurozone. Nothing about that has changed,”
she was quoted as saying in an interview with the daily Passauer Neue
Presse.
More than 70 per cent of Greeks want to stay in the euro, but a similar
proportion voted for parties that opposed the memorandum of understanding
between the government and its creditors that required drastic government
budget cuts and higher taxes in exchange for the loans.
The risk of Greece leaving the euro by the end of 2013 has risen to 75 per
cent, according to Citigroup analysts.
A senior ally of Mr Tsipras suggested that Greece’s creditors would not force
it to the wall. “Our wish to stay in the eurozone is our biggest single
negotiating tool,” said Yiannis Bournous. “There is no European
treaty that allows for one country to be kicked out.”
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