Greece's emerging government is expected to ask for more time to implement austerity measures. Germany is saying no. One side will have to back down.
Greek elections signaled a desire among Greeks to stay in the eurozone, and today the leaders of the party that won this week's poll are expected to announce a government coalition that is ready to accomplish European Union reforms.
German Chancellor Angela Merkel, the architect of European austerity, will in a sense square off with Greek forces, like the opposition far-left Syriza party, opposed to strict austerity attached to a recent bailout agreement. Ms. Merkel and Syriza now appear to represent the two "hard" bargaining positions, say analysts. Syriza and other anti-bailout parties in Greece received more than 50 percent of the votes in the June 17 election and are willing to think the previously unthinkable: Greece out of the eurozone.
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