Greece shouldn’t expect debt reduction: EU Commission chief
The EU Commission chief says Greece massive debt commitments will not be reduced after the anti-austerity Syriza party came to power in the country.
“There is no urgent need for action” on Greece's debt, Jean-Claude Juncker said in an interview with German television station ARD on Monday.
He further pointed out that a decrease in Greece’s debt “is not on the radar,” adding that Athens should “move towards the commitments” it had taken previously in relation to its huge bailouts by the EU and the International Monetary Fund (IMF).
The IMF, for its part, expressed readiness to continue its financial support of Greece, with its Managing Director Christine Lagarde saying that the organization looks forward to discussions with the new Greek government.
Greece commitments
French President Francois Hollande also stressed that Greece must keep its promises on debt repayments, saying “Commitments have been made and they must be honored.”
The comments came as Syriza leader Alexis Tsipras was sworn in as the new Greek prime minister after forming a coalition government with the right-wing nationalist Independent Greeks party.
The leftwing party that overtly rejects spending cuts and austerity measures managed to garner 149 out of the 300 seats in the parliament.
Tsipras is seeking to renegotiate the terms of Greece’s 240-billion-euro ($269 billion) EU-IMF loans that it received in return for the enforcement of harsh austerity measures.
Syriza also wants to raise salaries and pensions, put an end to layoffs and freeze the privatization of state assets, which have been key reforms demanded by the IMF-EU lenders.
European leaders are afraid that Greece could be forced to exit the eurozone in case it fails to repay its debt.
Syriza's victory, meanwhile, could encourage other anti-austerity parties across Europe, including Spain's Podemos, the popularity of which is growing in Spain ahead of the Spanish election in November.
MR/NT/AS
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