Will Greece stay in the euro while breaching terms of bailout?

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Greek financial markets are in chaos after the new anti-bailout government appeared in an attempt to defy the country’s international creditors. Alexis Tsipras, the recently appointed Greek Prime Minister said his party could not disappoint the voters.
Greek financial markets are in chaos after the new anti-bailout government appeared in an attempt to defy the country’s international creditors. Alexis Tsipras, the recently appointed Greek Prime Minister said his party could not disappoint the voters. Greek five-year bond profits dropped to 13.5%, showing fears that depositors may not see a return of their invested money. Share prices also fell for a third consecutive day on the Stock Exchange by more than 9%.

The bank shares saw the largest decline, dropping by 26.67%, with investors worrying that the possibility of Greece leaving the euro could see bank accounts converted into a reformed Greek national currency. The dramatic movements came after Mr Tsipras said in his first cabinet meeting that he planned to negotiate with creditors over the €230bn bailout.

Mr Tsipras has already appointed a team of anti-austerity ministers and promised to stop the full privatisation of a major port in Greece, Piraeus Port Authority, a sale made as part of the international bailout terms.

Sigmar Gabriel, Germany’s Economy Minister criticised stopping the privatisation stating that Athens should have discussed the decision with its Eurozone partners before making an announcement. The EU has repeatedly warned the new government to stick to its commitments, as a wrong move could potentially force Greece out of the Eurozone.