Greece PM Alexis Tsipras Comes Out Swinging On Second Day In Office

Despite EU policymakers’ calls for Greece’s new ruling party to stay in-line with its bailout obligations, Syriza party leader and newly sworn in Prime Minister Alexis Tsipras came out of the gate on his second day in office reversing the nation’s budget cuts and calling EU officials out for acting unilaterally.

After putting together a cabinet of like minded, anti-austerity supporters, Tsipras began making good on his election promises, beginning with the sale of state owned assets.

Reversing Austerity Cuts

The new government’s first act of business was to cancel the sale of a 67 percent stake in Greece’s Piraeus Port Authority. The state is also set to sell partial ownership of the Thessaloniki port, the Trainose railway and the ROSCO stock operator; but Tsipras is expected to reevaluate those offers as well. 

The government later announced that it was also planning to reverse cuts to Greece’s public sector workers by reinstating some of their contracts.

Conflict Of Opinion

On Tuesday, the EU issued a statement calling for tougher sanctions against Russia in response to a recent missile attack in Mariupol that has been linked to pro-Russian separatists.

Tsipras, who has been critical of Europe’s sanctions against Russia, says the statement was issued without Athens’ approval and that the Greek government is planning to issue its own statement claiming that the European Council did not follow the correct procedure in the coming days.

Related Link: Markets Brace As Greek Debt Slowdown Begins

Rocky Road Ahead

The conflicting statements and abrupt reversal of EU bailout terms mark the beginning of a dangerous fracture between Greece and the eurozone. Investors responded to the tension by pulling their money out of Greek assets and the nation’s share markets tumbled.

Banks were the hardest hit as markets began to prepare for the very real possibility that the nation may not receive another round of desperately needed funding.