Syriza reaches deal with right-wing party to form Greek government

Greek election winner Syriza has gained key support from an anti-austerity party to form a new government.

The right-wing Independent Greeks party said today it would back left-wing Syriza leader Alexis Tsipras to be the next prime minister, after he fell just short of a majority needed to govern following yesterday’s poll.

The surprise alliance between two staunchly anti-bailout parties, spooked markets and triggered a loss of nearly 4% on the Athens Stock Exchange as well as elsewhere in Europe.

Mr Tsipras has promised to renegotiate Greece’s massive bailout agreements, but has promised not to take any unilateral action against lenders from other eurozone countries.