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Greek attention turns to bailout

Wednesday, June 20, 2012 - 01:32

June 20 - Election winners New Democracy agree to form a coalition government with ousted PASOK, but both parties face a tough road to negotiate the country's bailout, even if Europe is under pressure water down its demands. Joel Flynn reports.

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Finally, a government. But this is just the beginning. New prime minister Antonis Samaras will next announce his cabinet, before attention turns to the bailout conditions. And according to French President Francois Hollande, that is the tricky part. (SOUNDBITE) (French) FRENCH PRESIDENT FRANCOIS HOLLANDE, SAYING: "(For Greece), more time means more money. It is better to invest money in a different way. The mobilisation of structural funds that allow us to achieve the same results, without disqualifying judgement of the terms." European policymakers and Angela Merkel in particular had been adamant that the conditions would not be changed. But Commerzbank's Peter Dixon says that the politicians won't be nearly so stubborn. (SOUNDBITE) (English) COMMERZBANK, PETER DIXON, SAYING: "I think Angela Merkel has to say certain things in public to satisfy her own domestic electorate, but I think the reality is, whilst on the one hand they'll say 'well we have to adhere to the current fiscal package', as has been set out and agreed by the Troika, the likelihood is that over time, some of those strictures will be watered down, possibly ignored, and that will give Greece a little bit more breathing space." Greece's coalition partners have little history of working together. But amidst fraying social tensions and crippling economic conditions, they must now find a way to present Europe with a united front. Joel Flynn, Reuters

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Greek attention turns to bailout

Wednesday, June 20, 2012 - 01:32