Alex Tsipras sworn in as Greece's prime minister, Syriza forms anti-austerity coalition
Updated : 14:40
Syriza leader Alexis Tsipras has been sworn in as Greece's new prime minister after his anti-austerity party Syriza agreed to form a coalition government with the anti-Europe Independent Greeks party (ANEL).
On Sunday, Syriza won 149 of 300 parliamentary seats in a Greek general election, just three seats short of an absolute majority.
Read more: Greece's Syriza wins elections, potentially threatening the country's stability
The agreement between both parties gave the coalition a working majority of 162 with the Independent Greek's 13 seats being added to Syriza's 149.
Commentators said it was a coalition of "uneasy bedfellows", but although ANEL is a right-wing party with a hard-line position on immigration, the party shares left-wing Syriza's determination to put an end to the bailout agreements.
Economist Holger Schmieding at Berenberg warned that "a coalition with ANEL could raise the risks of a big clash with Europe" as the party "is often seen as a group with a grudge, originally a breakaway faction from centre-right New Democracy".
Capital Economics worried that the Syriza victory threatened to "reignite" the European crisis and at least looked set to result in "a protracted period of heightened uncertainty over Greece’s future inside the euro-zone and could threaten to reignite a broader crisis across the currency union".
Tsipras was scheduled to meet with Greek president Karolos Papoulias at 13:30 London time in order to name the members of the new cabinet and receive the official mandate to form government.
Yanis Varoufakis is expected to be named Finance Minister while Giannis Dragasakis may become Deputy Prime Minister.
Tsipras is thought likely to immediately ask its 'Troika' of lenders – the European Central Bank, the EU Commission and the International Monetary Fund – to renegotiate the terms of the emergency loans.
The new government is likely to seek a restructuring of the government debt held by the European System of Central Banks, said Julius Baer.
"Such a negotiation will not pass without disruptions and threats from all sides. We do not assume, however, that it will destabilise the European government bond market in a material way. The market is still counting on the national central banks to massively bid for government bonds in the months ahead, which will keep yields at levels that we regard as unattractive for private investors."