Greek far-left party Syriza has formed an anti-austerity coalition government with the right-wing Independent Greeks party after winning the country’s general election on Sunday.
Syriza won 149 seats, two short of the number needed for an absolute majority in the Greek parliament, but together with the 13 seats won by the Independent Greeks the coalition will have a comfortable majority.
Syriza leader Alexis Tsipras has vowed end Greece’s economic “humiliation and pain” and renegotiate the country’s €240bn (£179bn) bailout from the EU.
Tsipras pledged to write off half of Greece’s national debt, but said he was ready to negotiate an alternative solution to the country’s economic woes. However, a number of European politicians have warned the new coalition to respect the terms of the original bailout.
The European market rose slightly in Monday trading on hopes that a compromise could be found between the EU and the new Greek government.