While Antonis Samaras, leader of Greece's New Democracy party, scrambled to forge a coalition with Pasok, his officials admitted their first task would be to renegotiate the €130bn (£104.4bn) bail-out agreed in May.
Dimitrios Tsmocos, a senior economic adviser, said Mr Samaras intends to "honour Greece's contractual obligations but will actively and aggressively renegotiate the memorandum". Another senior aide warned of a "social explosion" in Greece if the bail-outs terms were not relaxed.
Athens has to reduce its budget deficit to below 3pc of GDP by 2014 and find a further €11.5 bn in public spending cuts by 2014. In a new agreement the next government is likely to ask for that deadline to be extended by two years. But spiralling economic woes have already driven Greece off course. However, experts warned Greece will need another cash injection if the terms are relaxed .... http://www.telegraph.co.uk
