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Merkel rejects Greek government's bid for further debt relief

German Chancellor Angela Merkel ruled out the possibility of offering Greece more debt relief on Saturday and stated that she doesn't see "a further debt haircut" in the debt-ridden country's future.

The decision came as a blow to the new Greek government as they had promised voters that they would put anti-austerity measures in place and demand neighbouring countries to write off part of its 320 billion euro ($360 billion) debt.

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New Greek PM announces anti-austerity measures

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Greece's new Prime Minister Alexis Tsipras has announced a series of measures which signalled his intent to stick to the anti-austerity pledges that saw the party win last week's election.

He has announced plans to:

  • Halt privatisation agreed under the country's bailout deal, including the sale of a stake in the country's largest electricity company, Public Power Corporation of Greece (PPC).
  • Reinstate public sector employees judged to have been laid off without proper justification.
  • Increase pension payments for retired people on low incomes.

The measures could set the country on course for a clash with the rest of Europe, especially Germany, which has said it will not renegotiate the aid package needed to help the country pay its debts. But Tsipras remains defiant.

We are coming in to radically change the way that policies and administration are conducted in this country

– Alexis Tsipras, Greek Prime Minister

Greek bank stocks have fallen by more than 22% today in a third day of turmoil following Tsipras' election success.

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