The new Greek Prime Minister Alexis Tsipras says that his country will not default on its debts, but will negotiate with its creditors over the €240bn (£179bn) bailout.

In his inaugural cabinet speech, the left-wing Syriza party leader said that Greece would “not continue a policy of subjection” but that he did not plan to to begin a “mutually destructive clash” with its creditors, which are known as the ‘Troika’ and include the Eurozone countries, the European Central Bank (ECB) and the International Monetary Fund (IMF).

The terms of the 2010 bailout forced Greece into making drastic budget cuts and following a policy of austerity, which has contributed to soaring unemployment, with youth unemployment still at over 50%, and a 25% fall in the country’s GDP.

The EU has warned Greece to meet its financial obligations, with a default possibly forcing Greece out of the Euro.

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