Parliamentary Support - New Greek Government Pledges To Seek Revision Of Bailout Terms - Safeguard Euro Membership - The Washington Post

The government s aim is to tackle the crisis, to open the road to development and to revise the terms of the loan agreement without jeopardizing the country s European course or its presence in the euro, the statement said.

At the same time, it said, Greece will continue to reduce its fiscal deficit, control its debt and implement structural reforms.

Greece depends on international rescue loans, granted on condition of a harsh austerity program that has forced deep cuts in incomes and public services, amid soaring unemployment and a deep recession now in its fifth year.

After more than six weeks of political deadlock, the formation of a long-term government with broad parliamentary support has soothed global markets and Greece s European partners.

Many had feared a victory in Sunday s national election by anti-austerity parties could have prompted a disastrous confrontation with Greece s creditors, ending the flow of bailout funds and eventually forcing the country out of the 17-member eurozone.

In Brussels, European Commission President Jose Manuel Barroso welcomed the formation of Greece s new Cabinet, saying the EU will continue to work with Athens to bring back growth and job creation.

I am particularly reassured that the new administration will count on ample and broad-based parliamentary support , he said in a statement. I believe that this sends a clear signal of Greece s determination to honor its commitments and stay in the euro.

In Sunday s vote, Samaras New Democracy party narrowly beating the anti-austerity Syriza radical left party but didn t win enough seats in Parliament to rule alone and formed a coalition with the third-place Socialists and the smaller Democratic Left party.

Samaras, a 61-year-old U.S.-educated economist, campaigned on pledges to boost growth, cut taxes, seek extended deadlines to implement the country s pledges for more austerity, and raise the incomes of low-earners, large families, police and fighter pilots.

I expect the party to keep its word and do what is said it will do, said Athens resident Leonidas Tiniakos, 58. Samaras and the other parties which support the government have said that some parts of the bailout have to change. But it s the actions that matter, not the words.

Tiniakos, who said he voted for New Democracy, added that the fact Greece now has a government gives me a little hope.

Kyriakos Tzaferos, an out-of-work civil engineer now working as a real estate agent, said the government deal could help restore market stability.