Greece’s new government will find little support among eurozone policymakers for a debt write-off, a senior finance chief has said.
Jeroen Dijsselbloem, who heads the eurozone finance ministers’ group, said Greece must “stick to the rules”.
Speaking before a Eurogroup meeting on Monday, he said; “There is very little support for a write off in Europe.”
It followed anti-austerity party Syriza’s election win, which initially sparked big falls on financial markets.
The euro earlier fell to an 11-year low against the dollar, while the Athens stock market fell more than 5%. The markets had recovered by mid-morning, with the main share indexes in London, Paris and Frankfurt also reversing earlier falls on hopes that a compromise over Greece’s bailout terms might be found.
Syriza wants to renegotiate the €240bn bailout and slow austerity cuts.
But the party’s leader Alexis Tsipras helped calm investors’ nerves when he said in a speech that he wanted negotiation, not confrontation, with Greece’s international lenders.