Greece’s Syriza to form govt after election victory

GREECE’S Syriza party gained the key backing needed to form a government Monday, creating a surprise alliance with a small right-wing party that signals possible confrontation over the country’s bailout.

  Although the alliance between two ideologically opposed parties who share only their opposition to the bailout was a surprise, it nevertheless boosted stock markets across Europe that had fallen on news of the uncertain election results and fear of a second election. Stocks had fallen as much as 4 percent in Athens yesterday morning.

  According to AP, the right-wing Independent Greeks party said it would back Syriza leader Alexis Tsipras, to be the next prime minister, after he fell just short of the majority needed to govern alone following Sunday’s poll.

  “From this moment, the country has a government. Independent Greeks give a vote of confidence to Prime Minister Alexis Tsipras,” Independent Greeks leader Panos Kammenos said – without clarifying whether he would join a coalition with Tsipras or give support to a minority government.

  Tsipras, has promised to renegotiate Greece’s massive bailout agreements, but has vowed not to take any unilateral action against lenders from other eurozone countries.

  With 99.8 percent of the vote counted, Syriza had 149 seats in the 300-member parliament with 36.3 percent of the vote. The ruling conservative coalition was on 27.8 percent, and the extreme right Golden Dawn party in third place with 6.28 percent.

  Tsipras’ choice to negotiate with the Independent Greeks – a party aligned in Europe with the UK Independence Party – rather than the centrist Potami caused concern that he could take a tough line in negotiations with rescue lenders.