Angela Merkel, Germany’s chancellor, yesterday warned Athens to stick to the reform plans and budget targets agreed under its international bailout plan as financial markets and EU policy makers grappled with an anti-austerity backlash spreading across the eurozone.
The two main Greek parties suffered a collapse in support in Sunday’s election, plunging the country into political turmoil and raising doubts about its commitment to the terms of its rescue programme.
The euro fell and bank shares came under pressure in early trading as investors digested the implications of the Greek vote and the prospect of a challenge to Ms Merkel’s eurozone austerity after socialist François Hollande won France’s election.
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