by Dan Alexe As Eurozone finance ministers were gathering in Brussels to consider how to deal with Greece after the change of government, given the existing €240 billion Greek bailout programme expires on February 28, the rhetoric on Monday towards Greece was one of compromise rather than ultimatums. Financial markets retained their poise. Tsipras' election is likely to give new momentum to policymakers in Europe who want the region to focus less on debt reduction, as Germany has insisted for years, and more on spending to get growth going. The recognition that the region needs more action to encourage growth was highlighted by the European Central Bank's announcement last week it would start buying 1.1 trillion euros in bonds to stimulate the economy. The European Commission earlier launched a 315 billion euro investment plan. Greece has since 2010 needed 240 billion euros in loans from fellow Eurozone countries and the International Monetary Fund to avoid bankruptcy. Those loans came only on strict conditions that Greece cut its debts sharply. It cut spending and raised taxes — measures that had the side-effect of hurting growth. Greece suffered an economic depression and a surge in unemployment to above 25 percent. Riding popular discontent over this austerity imposed by the Eurozone creditor nations, Tsipras rode to power on a promise to undo some of the painful policies and demand a cut on the rescue loans it owes. Despite the tough rhetoric, both Syriza officials and Eurozone leaders said they were willing to be flexible. "France will be at Greece's side," said French President Francois Hollande. Jeroen Dijsselbloem, the Dutchman who chairs Eurozone finance ministers' meetings, said that even though "there is very little support for debt write-offs," there is room to consider ways to make Greece's debt more sustainable, if necessary. His views were echoed by the leaders of Belgium and Finland, a country that has long been among the most unmovable on austerity issues. Regional heavyweight Germany, however, was non-committal beyond stressing that Greece needs to honor its commitments. "Greece is still in the process of building a new government," said German Finance Minister Wolfgang Schaeuble. Yanis Varoufakis, a Syriza member who is tipped by some to become the next finance minister, sought to downplay concerns that the new government would take an aggressive stance in negotiations. He said the government would seek to convince its euro partners that reducing Greece's debt burden by linking repayments to growth, say, would be positive for all sides. At present, Greece has to repay its loans whatever the state of its economy, further worsening the country's debt. At over 170 % of GDP, Greece's debt is way beyond levels most economists consider manageable. He has also dismissed suggestions that Syriza would threaten to pull Greece out of the euro, so-called Grexit.
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