Greek withdrawal from the eurozone

Greek yields rose on Wednesday as a media report that the ECB was unwilling to approve Athens' proposal to raise the ceiling for its treasury bill issuance cooled optimism that a compromise debt deal may be reached.

Greece needs a long-lasting funding agreement to avoid having its credit rating downgraded, a Fitch representative warned on Tuesday.

By Ingrid Melander & Yann Le Guernigou

France's finance minister warned Athens against any attempt to play Paris off against Berlin over Greece's debt crisis, saying a Franco-German agreement was key to striking a deal that would help Greeks and ensure they met their commitments.

Coalition talks have started between leftist SYRIZA leader Alexis Tsipras and the Independent Greeks right-wing party's Panos Kammenos.

Their meeting was scheduled for 10:30 EET, though Kammenos arrived a little earlier at the SYRIZA headquarters, the English-language website of Kathimerini reports.

The euro and European shares and bonds shook off worries yesterday over Greek election winner Syriza's pledge to take on international lenders, a strong sign of confidence in the ECB's new money-printing program.

Weakness in European shares lasted only for about two hours, although the main Athens index fell and Greek bond yields rose.

Greeks were voting Jan. 25 in an early general election crucial for the country's financial future, with the radical left Syriza party of Alexis Tsipras tipped as the favorite to win, although possibly without a large enough majority to form a government.
     

 More than 60 pct want 'consensus' in talks with troika

A new opinion poll showed opposition SYRIZA leading conservative New Democracy by 4 percent. The survey was carried out by Pulse on behalf of Action24 website.

A Greek exit from the eurozone -- or Grexit -- would undermine the model of euro stability, a senior European Bank for Reconstruction and Development (EBRD) official said on Tuesday, but the EBRD does not expect it to happen.

By Sotiris Nikas

By Eleni Varvitsioti

Finnish Prime Minister Alex Stubb is one of the 19 leaders in the eurozone that will be asked to sign a new agreement with Greece after the elections.