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Greece will not default - PM Tsipras Greece will not default - PM Tsipras
(35 minutes later)
New Greek PM Alexis Tsipras says his country will not default on its debts.New Greek PM Alexis Tsipras says his country will not default on its debts.
Addressing his first cabinet meeting since Sunday's victory, Mr Tsipras said he would negotiate with creditors over the €240bn (£179bn; $270bn) bailout.Addressing his first cabinet meeting since Sunday's victory, Mr Tsipras said he would negotiate with creditors over the €240bn (£179bn; $270bn) bailout.
"We won't get into a mutually destructive clash, but we will not continue a policy of subjection," said the left-wing Syriza party leader."We won't get into a mutually destructive clash, but we will not continue a policy of subjection," said the left-wing Syriza party leader.
The EU has warned his government to stick to its commitments. A default could force Greece out of the euro.The EU has warned his government to stick to its commitments. A default could force Greece out of the euro.
As the newly elected leader of the radical left party made his inaugural cabinet speech, Greek government bond yields rose to near record levels - reflecting investors' concerns about short-term risks of a debt restructuring over the coming months. The Greek stock market fell 6.4%.
Greece has endured tough budget cuts in return for its 2010 bailout, negotiated with the so-called troika - the European Union, International Monetary Fund (IMF) and European Central Bank (ECB).
The economy has shrunk drastically since the 2008 global financial crisis, and increasing unemployment has thrown many Greeks into poverty.
Analysis: Mark Lowen, BBC News, Athens
Alexis Tsipras sought to strike a balance - defiant about negotiating debt relief from the eurozone, while reassuring his European partners.
Across the eurozone, governments oppose a debt write-off for Greece.
The Netherlands has added its voice to that of Germany and France in insisting that Greece stick to its previous commitments. The Dutch finance minister, who heads the group of those in the eurozone, will be in Athens later this week for discussions.
Both sides will try to stick to their positions - and it may come down to which will blink first.
Mr Tsipras's speech is, perhaps, an olive branch extended from Athens after hardline pre-election rhetoric, but there is no sign that the new government will back down on its opposition to austerity.
Five things Syriza wants to change
Tsipras faces great expectations
Unbowed?
Vowing to defend Greek dignity, Mr Tsipras said a renegotiation of the Greek debts would be in search of "a viable, fair, mutually beneficial solution". He did not give any details.
Mr Tsipras promised "realistic proposals" for an economic recovery and vowed to fight corruption and tax evasion.
His recovery plan was aimed at preventing deficits in the future.
Mr Tsipras's new coalition government - with the right-wing Greek Independents - was sworn into office on Tuesday, after sweeping to power on the pledge of ending years of austerity.
The Greek government's chief economics spokesman, Euclid Tsakalotos, has argued that it is unrealistic to expect Greece to repay its huge debt in full.
The current bailout programme of loans to Greece ends on 28 February. There are still 1.8bn euros of loans that could be disbursed to Greece if it meets the conditions imposed by the troika.
Economists estimate that Greece needs to raise about 4.3bn euros in the first quarter of 2015 to help pay its way, with Athens possibly having to ask the IMF and eurozone countries.
The new government, however, has announced that it is putting on hold major privatisation projects, including the port of Piraeus and the main power company, the Public Power Corporation of Greece.
Greek economy in numbers