European shares rally as Greece drops calls for debt write-off

London

EUROPEAN shares rallied and yields on eurozone government bonds tumbled on Tuesday after the new Greek government dropped calls for a write-off of its foreign debt.

The new Greek government, led by the left-wing Syriza party that won elections just over a week ago, on Monday ditched calls for a write-off of foreign debt and proposed ending a standoff with its official creditors by swapping the debt for new growth-linked bonds.