Defiant Greek PM sets up EU clash with bailout rejection, austerity rollback

PUBLISHED ON FEB 9, 2015 7:50 AM

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Greek Prime Minister Alexis Tsipras delivering his first major speech in Parliament in Athens on Feb 8, 2015. -- PHOTO: REUTERS

ATHENS (Reuters) - Leftist Prime Minister Alexis Tsipras laid out plans on Sunday to dismantle Greece's "cruel"austerity programme, ruling out any extension of its international bailout and setting himself on a collision course with his European partners.

In his first major speech to parliament since storming to power last month, Tsipras rattled off a list of moves to reverse reforms imposed by European and International Monetary Fund lenders: from reinstating pension bonuses and cancelling a property tax to ending mass layoffs and raising the mininum wage back to pre-crisis levels.

Showing little intent to heed warnings from EU partners to stick to commitments in the 240-billion-euro (S$367.63 billion) bailout, Tsipras said he intended to fully respect campaign pledges to heal the "wounds" of the austerity that was a condition of the money.

Greece would achieve balanced budgets but would no longer produce unrealistic primary budget surpluses, he said, a reference to requirements to be in the black excluding debt repayments. "The bailout failed," the 40-year-old leader told parliament to applause. "We want to make clear in every direction what we are not negotiating. We are not negotiating our national sovereignty."