New Prime Minister Alexis Tsipras says he won’t go for an extension of Greece’s current bailout.
Tsipras, leader of the left-wing Syriza party, was sworn in last month as Greece’s new Prime Minister after forming a coalition with the right-wing Independent Greeks party. While campaigning, he said he would reject a bailout extension.
Speaking before the parliament Sunday, he said that the Greek people had not given him authority to negotiate an extension and that he would seek a new agreement to underwrite the country’s finances.
Tsipras added that Greece is looking for a bridge deal until June, when a more solid agreement can be reached with European partners.
“Greece wants to service its loans,” the Prime Minister said. But, he added: “The debt is not sustainable. The problem is political. If our partners keep insisting on austerity, the debt will only continue to grow.”
Since 2010, Greece has received bailouts totaling 240 billion euros. In return, the International Monetary Fund, European Commission and European Central Bank demanded tax hikes, a freeze on state pensions, bans on early retirement and deep cuts in government salaries.
In an address aimed primarily at a domestic audience, Tsipras focused the humanitarian crisis in Greece that he said has resulted from “catastrophic austerity,” and pledged to combat tax evasion and corruption.
He also announced a number of significant social measures, including:
— The rehiring of a number of civil servants “who were fired unconstitutionally.”
— An increase in a number of pensions.
— The gradual re-establishment of the minimum wage at 750 euros a month by 2016.
— And free access to food and electricity to “the victims of the bailout.”