The Greek New Year: Departure from the Euro?

Could the Troika accept the economic policies of a Syriza-led Greek government?

Jeremy Beckwith 12 January, 2015 | 9:54AM
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While Europe relaxed during their Christmas holidays, Greek MPs were unable to elect a new President and a general election has been called for January 25. The opinion polls show Syriza, the radical left party, with a 3% lead. The Greek parliament has 300 MPs, 250 of whom are elected on a proportional representation basis, but the other 50 are awarded to the party that wins the greatest share of the vote. 

In recent weeks, Syriza have been toning down their aggressive rhetoric about unilaterally defaulting on Greek government debt, possibly in a bid to gain more moderate votes. In addition, if the current polls are correct, Syriza will not achieve a majority of 151 MPs and will thus need to enter into a coalition with a more moderate party. Markets have thus become a little more hopeful that another Greek financial crisis will be avoided.

Syriza’s economic policy has 3 strands:

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About Author

Jeremy Beckwith  is Director of Manager Research for Morningstar UK

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