Greek election results allay eurozone breakup fears

Many of the papers report on the victory of the pro-bailout conservative New Democracy party in yesterday's Greek elections.

The results are said to have averted fears that Greece would be the first country to be forced out of the single currency.

According to the Guardian, anti-austerity radical Alexis Tsipras increased his party Syriza's share of the national vote to 27 per cent, forcing New Democracy to form an unstable coalition with their traditional rivals, the centre-left Pasok party.

The Telegraph says any New Democracy-led government will be under extreme pressure to renegotiate the terms of Greece's bailout, with officials concerned that the weakness of the coalition will affect its ability to implement the austerity measures demanded by the EU and IMF.

Berlin indicated that it was prepared to negotiate with Athens over the deal, with German foreign minister Guido Westerwelle suggesting Greece would be allowed more time to make spending cuts, as long as the country adhered to its EU-IMF credit agreements.

The Independent highlights opinion polls showing 80 per cent of Greeks want to retain euro membership, but will not accept any further austerity measures that have already seen their taxes rise and wages, jobs, pensions and government expenditure cut.

According to the paper, the New Democracy party is likely to have 129 parliamentary seats, with its leader Antonis Samaras expected to become prime minister. Syriza will have 71 seats and Pasok 33.

BBC News reports that markets have responded positively to the Greek election results, with analysts suggesting investors feel the crisis has bottomed out for now and that capital may begin moving back into Europe.