News Analysis: Greek radical Left SYRIZA leader Tsipras sworn in as PM, thorny road ahead

Greek anti-bailout radical left SYRIZA party leader Alexis Tsipras was sworn in on Monday as Prime Minister as talks for the formation of a coalition government were underway.

As the celebration for the historic victory in Sunday's general polls which gave Greece its first left-led administration in six decades wears off, political analysts in Athens warned of the thorny road ahead awaiting the new prime minister and his coalition allies.

The stability of the alliance with the Right-wing anti-bailout nationalistic Independent Greeks (ANEL) party of Panos Kammenos which was announced on Monday will be one of the key challenges for the 40-year-old leader in the domestic front, they noted.

The implementation of the party's pre-election economic "national salvation" program and in particular the renegotiation of post-bailout cooperation and the way to make sustainable the Greek sovereign debt burden will be the major challenge in finances and international ties.

Tsipras' choice to co-rule with anti-bailout ANEL instead of forging a coalition with the centrist moderate pro-European River (Potami) party puzzled several prominent commentators in Greek media such as Costas Gianakidis.

They interpreted it as "a possible decision to set on a collision course with international lenders over SYRIZA's request for a fresh restructuring of the Greek debt or on the contrary a decision to make compromises in several issues and disguise SYRIZA's future shift to more traditional right-wing policies in domestic affairs."

"His first leadership choice for the formation of his new government has raised quite a few eyebrows, both at home and abroad," Theo Ioannou added.

"Instead of turning to a more compatible partner like Stavros Theodorakis' centrist the River party, he immediately chose the one political leader that represents the opposite ideological viewpoint of his. If nothing else, Tsipras and Kammenos look like the strangest of political bedfellows," Ioannou added.

With 36.3 percent of the votes and 149 seats in the next 300-member strong assembly which convenes on Feb. 5, Tsipras needed a helping hand. With the government alliance with ANEL the two parties will control 162 seats, a wide majority to pass draft bills to reverse austerity measures introduced since the start of the debt crisis five years ago to avert a bankruptcy.

With Greece starting to return to growth since 2014, Tsipras has pledged to focus on the tackling of the humanitarian crisis, the restart of the economy to boost growth, the reform of the state and the negotiation of a "mutually acceptable and fair" deal with European Union (EU) and International Monetary Fund (IMF) creditors.

He assured over the past few weeks that he did not intend to clash with anybody and lead Greece back to the brink of default and to the exit from the eurozone.

The messages from European officials showed that the pressure will be great to abide by the commitments undertaken under the bailout program and continue on the painful fiscal adjustment and reform path.

If EU/IMF creditors who have implied willingness to discuss only a new reduction of interest rates or extension of the debt repayment time framework, will not make any substantial concessions to allow some breathing space to Greek people in coming months, then the new government will soon face a backlash, political analysts in Athens said.

"Talks with troika will be the new government's main test ... SYRIZA will have a tough task convincing the country's official lenders to continue funding and adopt its policy proposals, many of which are at odds with the current adjustment program," Dimitris Kontoyiannis wrote in an opinion article in "Kathimerini" (Daily) newspaper.

"A compromise seems to be the best solution, but requires concessions from both sides. Whether this is possible remains to be seen," said Kontoyiannis.

The headlines of Monday's newspapers in Greece and the first reactions of entrepreneurs reflected the mixed feelings and thoughts over the performance of a SYRIZA-led government, the high expectations and the concern for the several open fronts.

"Strong mandate to turn page," read the headline on the front page of Ethnos (Nation) daily.

"Harsh punishment from the middle class," Demokratia (Democracy) daily said.

"Good morning ... on a razor edge," added "Eleftheros Typos" (Free Press), stressing the skepticism over Greece's future as a member state of the EU and the eurozone.

"The government that SYRIZA will form has a historic opportunity and great responsibility. The people gave him a mandate and not a blank check, like Mr. Tsipras himself admitted," an editorial of "Vima" (Tribune) daily stressed.

"The hope of the overwhelming majority of the Greek peoples, which accompanies this mandate, is that he keeps his promises, so that the uncertainty can finally end, so that the country can turn to the future and finally overcome the sins of the past," said the editorial.

In the finance world, the international credit ratings agency Standard & Poor's warned on Monday over a forthcoming potential downgrade for Greece if uncertainty of a showdown with creditors prolongs.

At the Athens Stock Exchange the basic share price index closed at 813.55 points, down by 3.2 percent. It had reached 842.6 points (+0.26 percent) for a while earlier in the day once the Independent Greeks announced that they would give confidence vote to Tsipras.

Businessmen held a wait and see stance, urging for swift changes with caution to not compromise Greece's position in the European Union and the eurozone.

"There is no room for delay; the Greek economy cannot wait ... Small enterprises and self-employed paid a very heavy price for the austerity policy. More than 230,000 businesses closed down and more than one million workers lost their jobs since the crisis...," President of the Hellenic Confederation of Professionals, Craftsmen & Merchants (GSEVEE) George Kavathas said. Endit