Europe
Deciphering the Greek verdict and the entailed ordeal

flickr/stefanogabrieli
In a tectonic shift in the history of Greek politics, the leftist party Syriza has come at the helm of Parliament of Hellenes. The former coalition government of New Democracy–Pasok headed by former Prime Minister Antonio Samaras failed to get their Presidential candidate elected even in the third round of parliamentary presidential elections, which led Greece into snap elections and dissolution of the erstwhile parliament.
The radical leftist Syriza party led by Alexis Tsipras secured 36.3%, it formed a coalition with Independent Greeks thereby commanding a majority in the parliament. The dynamic 40-year-old Alexis Tsipras was consecrated the Prime Minister on 26th January. The event is unprecedented as the victorious side is anti-austerity. Greece has been battling a perilous financial crisis since over half a decade now. In dearth of any private lenders for stabilizing the Greek economy, Eurozone countries and IMF handed out phased bail loans to Greece inevitably imposing austerity measures on the Greek government.
Austerity subsumes, inter alia, minimalizing government employee wages, increasing taxes, spending cuts. The Greek population faces the brunt due to all this. Tsipras’s appeal to the voters was his staunch anti-austerity stance, he stated that he would make sure that the “troika” (European Commission, European Central Bank and IMF) controlling Greece’s economic affairs based on the bail out loans shall be put behind as a part of his debt restructuring and reform strategy. Tsipras’s populist appeal came in a time when the Greek citizens are worn out with the struggle against recession and the still impending austerity measures. Tsipras’s victory has sent ripples gushing to Brussels with the speculation of “Grexit” that is Greek’s exit from Eurozone gaining momentum. Sequestering from Eurozone would be a very bold move as the membership to Eurozone is irreversible. However, if Greece does go that way, there will be long and far reaching consequences for both the parties involved.
Greece economic stability is still hinged to lenders even if it introduces effective fiscal reforms, as it will take time to recover. However if Greece leaves Eurozone then it will have no primary lenders to help revive the economy. Greek government seems to be pushing for debt write-off from ECB which will majorly impact the credibility to the lenders. Other Eurozone nations are already voicing their concerns over outrageous demands from Greece. Greece cannot expect to win an argument over this against the central bank and that might force its exit. Essentially if Tsipras fathoms to find a middle ground of debt restructuring with the central bank he will fail in keeping his election promises. He certainly faces an ordeal upon the Eurozone matter but sticking with the zone and finding convergence makes a plausible choice so far.
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