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ATHENS - Athens raised the prospects Wednesday of renegotiating ahard-earned rescue package after an election in which votersroundly rejected austerity measures, raising fresh doubts overGreece's eurozone membership. The head of the radical left-wing Syriza party charged with forminga government is planning to write Wednesday to the highly indebtednation's international lenders telling them that the country wouldrenege on its austerity commitments. Even the outgoing coalition Pasok and New Democracy that had signedoff the agreement are beginning to suggest that the EU-IMF dealwould have to be renegotiated. The uncertainty sent markets and the euro tumbling, as fearsresurfaced of Greece quitting the eurozone before the year is out. Questions also surfaced if international lenders would go aheadwith the promised loans to save the country from default if Athensis not prepared to deliver on its promises. Syriza chief Alexis Tsipras has two more days to form a coalition,with meetings due Wednesday with the leaders of Pasok and NewDemocracy. But Tsipras has already made his position against theausterity measures clear. "The public verdict has clearly nullified the loan agreement and(pledges) sent to Europe and the IMF," the 37-year-old said in atelevised address on Tuesday. "Citizens have crushingly voted against the barbaric policy of loanagreements. They put an end to plans for 77 new austerity measuresin June, plans to lay off 150,000 civil servants, and to additionalmeasures worth 11.5 billion euros (S$18.94 billion). "This was a mature, conscious political choice," he said. But the anti-austerity rhetoric is also throwing doubts on whetherlenders will release desperately-needed loans due at the end ofthis week. "There are questions on securing" the latest tranche of rescueloans, said Gikas Hardouvelis, economic advisor of outgoing PrimeMinister Lucas Papademos on Skai Radio. "Why would they give us money?" if Greece deviated from itscommitments, Hardouvelis noted. According to daily Kathimerini, the European Commission hasconfirmed that the 5.2 billion euro trache would be approved,though news website To Vima speculated that the EU may decide tohold back on the payment to pressure Greece during its powertransition. Greece is due to receive another 98 billion euros in outstandingloans agreed under the second bailout package, which includes 130billion euros in fresh loans and another 107 billion euros wipedoff by private creditors. In its fifth year of recession with unemployment at 20 per cent,Greece is committed under the previous government to finding byJune another 11.5 billion euros in savings over the next two years. French Foreign Minister Alain Juppe said the situation "isextremely difficult, extremely tense." "The result of the elections showed a very strong reversal for thetwo governing parties and an increase of extremes, so it isextremely worrying," he told Europe 1 radio. Although his party came second in the polls, Tsipras was given thetask of forming a government as the first-ranked conservative NewDemocracy party failed to get one together. Sunday's general elections did not produce a clear winner but gavean overwhelming boost to Syriza which now has 52 deputies inparliament, and also gave neo-Nazis seats for the first time indecades. New Democracy and socialist Pasok, now only have a combined 149 MPsin the 300-seat parliament. Even assuming that Syriza and other anti-bailout parties couldovercome their gaping differences, they can only muster 151 votes,enough for just a razor-thin majority in parliament. The Communist party, which has 26 seats, on Tuesday refused tocooperate. A deadlock was increasing likely as neither NewDemocracy nor Pasok were expected to do a deal with Tsipras. A new government has to be formed by May 17 or new elections willbe called. Tokyo closed at a three-month low, tracking a poor showing in USmarkets, with the Dow Jones Industrial Average giving up almost 200points at one stage until a late buying rally minimised the day'slosses at 76.44 points. Interest rates on 10-year German bonds fell Wednesday to a historiclow of 1.530 per cent, amid a flight to safety. Greece's cost of borrowing jumped on Tuesday as it sought to raise1.3 billion euros in a sale of six-month treasury bills, with itpaying 4.69 per cent to investors, up from 4.55 per cent at thelast equivalent sale on April 10. "The failure of the Greek election to produce a new governmentprovides some support to our view that Greece could leave theeurozone as soon as the end of this year," London-based CapitalEconomics said in a note. I am an expert from solidtimberdoor.com, while we provides the quality product, such as Exterior Timber Doors Manufacturer , China Commercial Fire Rated Doors, Custom Timber Doors,and more.
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