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Syriza pledges to keep Greece in euro

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The Greek election results are out and as widely expected, left wing Syriza party won. It was just short of an absolute majority and will have to form a coalition government though.

The leader of the party, Alexis Tsipras pledged to keep Greece within the euro and aims to persuade some of Greece’s international creditors that they should accept a writedown on their holdings to bring the Greek government’s debt down to a sustainable level. He has promised a social spending program of about 11.5 billion euros or almost 6 percent of the country’s GDP.

The current round of bailout funds expires on February 28 and talks with the international lender, consisting of the IMF, ECB and European Commission (known as the troika) for its renewal have stalled since September amid demands for further belt tightening.

Addressing supporters in central Athens Sunday night, Tsipras said Greece is putting austerity behind it. The Syriza government’s priority will be to restore the “lost dignity” of the Greek people and there will be “neither a catastrophic collapse nor will continued kowtowing be accepted.”

The euro briefly dipped below $1.11 in early Asian session trading today before steadying back above $1.12.

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