The Greek political crisis

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Greeks warned of debt deal anarchy

ALEXIS Tsipras, of Greece's radical left Syriza party, has issued an ultimatum to rival parties in the nation's parliament: they must renounce support for the European Union-led bailout if they want to enter government.

The Age,

10 May, 2012

New Democracy leader Antonis Samaras, who earlier failed to form a government, said he was being asked ''to put my signature to the destruction of Greece''.

''[Mr Tsipras] interprets, with unbelievable arrogance, the election result as a mandate to drag the country into chaos,'' Mr Samaras said. ''I hope [he] will have come to his senses by the time we meet.''

Mr Tsipras was due to meet rival leaders in Athens last night.

''The bailout parties no longer have a majority in parliament to vote for measures that plunder the country,'' Mr Tsipras said. ''There will be no €11 billion ($A14.1 billion) of additional austerity measures; 150,000 jobs will not be cut.''

The EU's initial response to the electoral shocks was to insist that it too wants growth.

In Brussels, Herman Van Rompuy, the European Council's president, called a special summit to be held in a fortnight at which the French president-elect, Francois Hollande, will be able to unveil his proposals for tackling the euro crisis.

Jose Manuel Barroso, the European Commission's president, said it was likely that EU leaders would agree next month to increase the capital of the European Investment Bank by €10 billion, which could be used as collateral to inaugurate large infrastructure ''pilot projects'' on a pan-European scale this year. Mr Hollande campaigned on a similar platform.

The commission also says that there is €82 billion in unused structural funds from the EU's medium-term budget, which could be tapped to promote growth. However its use in this way is likely to be opposed by national governments.

New elections in Greece are the most likely scenario, in which case the major parties would see a return of voter support, said Thanos Veremis, the vice-president of the Hellenic Foundation for European and Foreign Policy.

''The Greeks have to blow their top to let the world know they are unhappy,'' Professor Veremis said. ''Once they do that, they tend to go back to the real world.''