The center-right modernizer could prove a challenging opponent for Prime Minister Alexis Tsipras
Greek defence minister threatened to flood Berlin with migrants if they withdrew support for bailout plan
Stocks rose to two-month highs, while government bond yields hit their lowest in three weeks.
The new prime minister told EU leaders austerity was killing his economy and an alternative had to be found.
Greece plans to make its debt more manageable by swapping rescue loans for growth-indexed bonds.
The Greek government began negotiations with the head of the eurozone finance ministers in Athens.
Most of the cabinet are anti-austerity veterans, signaling that Alexis Tsipras has no intention of backing down.
Radical left-wing party Syriza found themselves two seats short of a majority, and have chosen an unlikely ally.
Syriza won 149 seats in the 300-seat parliament, two short of an absolute majority.
The left-wing coalition has softened its anti-euro rhetoric, angering the party's radical wing.