The coalition's platform particularly challenges euro zone paymaster Germany, which has offered to adjust the lifeline's terms to make up for time lost as a result of two Greek elections since May, but refuses to revise it radically.
Greece wants a two-year extension to the 2014 deadline for it to cut its budget deficit to 2.1 percent of national economic output, from 9.3 percent in 2011. The extension would require an extra 16 to 20 billion euros in foreign funding.
The New Democracy narrowly defeated the radical leftist SYRIZA bloc and has little room to move on promises that got it elected, SYRIZA wants to tear up the latest bailout deal and austerity program, which it blames for driving the economy ever deeper into recession.
The government will also seek to extend the payment of unemployment benefits to two years from one, to offer benefits to the self-employed without work, and to limit public sector lay-offs. Lenders want the public sector payroll cut by 150,000.
Greece's new government should stop asking for more help and instead move quickly to enact reform measures agreed to in return for previous bailouts from its European partners, German Finance Minister Wolfgang Schaeuble one of the Chief architects of the EuroCrisis said on Sunday.
Schaeuble told Bild am Sonntag in unusually blunt language that Greece has forfeited much of Europe's trust during the sovereign debt crisis, as reflected in an opinion poll covering the euro zone's four biggest nations and published in the paper.
In a separate interview on Sunday published in Der Spiegel news magazine, Schaeuble again ruled out any form of collectivized debt such as euro bonds and defended the German government's hard line on that.
It's because you cannot separate the responsibility for decision-making from the liability, he said when asked why Germany was so adamantly opposed. That's true for almost everything but especially when it comes to money.
Anyone who has the chance to spend someone else's money will do that, he added, before telling the reporter: You'd do that and so would I. The markets know that. And so from that point of view they wouldn't be convinced by euro bonds.
Economist Shayne Heffernan of HeffCap believes Bank Fraud May Collapse the Euro
The Economies of Spain and Greece are in ruins, Italy is set to join them, and if they all stay in the EU the Euro may hit 89c USD according to Economist Shayne Heffernan.
The cost of borrowing for governments in Europe is on the rise, unemployment is at record levels and investors confidence vanished after the disastrous Greek default. Spanish bankers insist that there will be no bank runs. But ministers in private are clear about their wish to see European-wide bank deposit guarantee measures put in place quickly to avoid the risk of what could be a catastrophic event. There are signs the European Central Bank favors deposit guarantees.
The idea of the EU Deposit Guarantee is a financial fraud that few will fall for, it is not possible to fill a bank with Government Bonds and call it safe.
The idea is tantamount to printing money, but it seems the idea of a large scale financial shuffle has gathered support as it does not involve anyone producing cash, cash that they do not have, to fix the problems.
The widespread use of deposit guarantees and the use of EU Government Bonds as any form of security will directly lead to a collapse in the value of the Euro.
Devaluation seems the only real exit now for Europe, Germany again will be a huge winner from such a move.
Devaluation either by the ECB, the European Banks or the market is now the only option if the EU is to continue. A drop in the EU to USD rate to 80c would dramatically improve the trade deficit in the trouble countries and offer some hope to their desperate economies.
While the move would pressure the German trade surplus creating an inflation event in the small number of European countries that are still near full employment, it remains a better option than having an economic catastrophe in many of the EU member states.
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reached a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.Read the Terms of Service