Leftists to rule in Greece

Syriza believes ‘emergency’ plan will cost £12 billion

The leftwing Syriza party, led by Alexis Tsipras, won Greece’s general election on Sunday after campaigning on a pledge to renegotiate the country’s international bailout and reverse years of spending cuts and painful economic reforms.

The party’s ambitions have already sent shockwaves through financial markets and the rest of the eurozone.

They have also alarmed Greece’s international creditors, who fear a Syriza government might default on its massive debt and turn its back on the terms of a £240-billioneuro bailout by the European Union and the International Monetary Fund.

Syriza, proposing to tackle what they call a “humanitarian disaster” caused by the demands of Greece's bailout, want to immediately raise the minimum salary from 580 to £751 a month.

People working and those already retired would have a “13th month” of pension if their monthly pension is less than 700 euros. Coupons for food and electricity would be given to at least 300,000 households and people's primary places of residence would be protected from repossession.

Other Syriza priorities include guaranteeing access to free medical care and scrapping tax on heating fuel.

The party believes the “emergency” plan will cost £12 billion which they say they will raise from securing reduced repayments on the national debt, by re-directing EU funds, and by cutting tax fraud and smuggling.

Syriza’s demands to write off part of the colossal Greek debt which stands at 175 percent of GDP combined with the proposed extra spending measures are certain to create tension between Athens and its creditors.

Syriza also challenges measures demanded in return for the bailout by its troika of lenders, IMF, EU and European Central Bank, such as freeing up the labour market to make it easier for companies to lay off staff.