Greece has set the stage for a mighty battle with its lenders this week, and that's making investors very nervous.
Stocks in Athens fell sharply Monday after Prime Minister Alex Tsipras outlined plans to reverse a string of economic reforms in defiance of Greece's bailout terms. He is due to meet fellow European leaders this week.
Tsipras' party was elected last month on a promise to scale back severe spending cuts that Greece imposed in exchange for about €240 billion ($271.5 billion U.S.) in international rescue loans.
Setting out his policies in parliament Sunday, Tsipras vowed to raise the minimum wage to €750 per month by 2016, rehire some public sector workers and free food and electricity for the poorest households. He promised to raise the tax threshold to €12,000 from €5,000, and halt the privatization of utilities.
Tspiras said he would not seek an extension to Greece's current bailout, which expires at the end of the month. Instead, he wants a bridging arrangement to tide Greece over until June while a new deal is hammered out.
European finance ministers are due to consider Greece's plan when they meet on Wednesday. EU leaders gather on Thursday.
Both sides are standing firm on how to deal with the country's massive debts. Greece is running out of money, and its combative stance has worried markets.
