The new prime minister will have to comply with Greece's commitments on public debt, the euro zone chief said.
It's a big slap for Alexis Tsipras. The outgoing prime minister lost the general election on Sunday, leaving his seat to conservative Kyriakos Mitsotakis. The task will not be easy for the latter.
Kyriakos Mitsotakis must face a major challenge by succeeding the leader of the left-wing party Syriza. If he had raised hope in his election, Tsipras had indeed been forced to accept a bailout with tough measures to prevent the exit of the euro area. However, Mitsotakis' New Democracy Party believes that this policy stifles growth.
READ ALSO >> Legislative in Greece: the conservatives crush Tsipras, who admits his defeat
The delicate task of the new Prime Minister will be to maintain creditors' confidence while alleviating the difficulties of the Greeks, which promises to be all the more difficult as the latest international aid plan for Greece, which ended in August 2018, forecasts a primary surplus of 3.5% for 2018 and until 2022.
"The 3.5% is a cornerstone of the aid program," said Klaus Regling, President of the European Stability Mechanism (ESM), on Monday, whose mission is to help countries in the region euro in difficulty.
Commitments on the debt to be respected
He will have to respect "the commitments" on the debt taken by his predecessor vis-à-vis the creditors, warned Monday the head of the euro zone.
"My advice (to the new government), it would be to meet the commitments," said Mario Centeno, president of the Eurogroup, after a meeting between the finance ministers of the euro area in Brussels. "This is the only way I know to gain credibility," he added.
READ ALSO >> Greece: the right triumphs over Tsipras and promises to "make his pride" in the country
"Commitments are commitments, if we break them, credibility will be the first thing to collapse, leading to a lack of confidence, investment and, ultimately, growth," he insisted.
"The reform process (initiated in Greece) is the right way to create all the jobs that everyone expects, especially young Greeks," said Pierre Moscovici, European Commissioner for Economic Affairs.
Greece's public debt stood at 335 billion euros ($ 376 billion) last year, or 180 percent of GDP.