Connect with us

Hi, what are you looking for?

World

Op-Ed: Syriza party close to a majority in Greek election win

The leader of Syriza, Alexis Tsipras, said that his win marks an end to the vicious austerity conditions imposed on the country by the IMF, the European Commission and the European Central Bank (The Troika): “ The verdict of the Greek people renders the troika a thing of the past for our common European framework.”
If Tsipras ends up without a majority there are at least two parties he could probably add to form a coalition, the center-left party To Potami or the nationalist Independent Greeks. The two parties agree that neither would serve in the government if the other is part of the coalition. However, this hardly matters since To Potami is projected to win about 16 seats which together with those of Syriza would give a clear majority. The right wing Golden Dawn party came third in spite of the fact that more than half its members are in jail. The Greek Communist Party is not mentioned as part of a Syriza coalition even though it will win some seats.

As Syriza approached possible victory, Tsipras softened his leftist rhetoric and ignored parts of the Syriza platform such as taking Greece out of NATO. Indeed he said that he wanted Greece to stay in the euro zone and meet Greece’s obligations. Almost three-quarters of the Greek population want to say within the euro zone. However, it is possible that Tsipras may be planning to show Greeks that it is impossible to negotiate a bailout deal with the IMF that does away with severe austerity requirements. He could then claim that he was forced into what is called a Grexit, or exit of Greece from the euro zone. Nevertheless with his electoral victory Tsipras sounded an optimistic note: “Greece leaves behinds catastrophic austerity, it leaves behind fear and authoritarianism, it leaves behind five years of humiliation and anguish.” He promised that he would seek a fair and mutually beneficial solution to bailout crisis.

Many European leaders demand that Greece respect the terms of the bailout deal. If the Troika keep to this hard line, Tsipras may be forced into a Grexit in order to retain his political credibility. One of his main campaign slogans was “Hope is coming.” If there is no hope in sight after negotiations with the Troika take place, the only hope left will be in a Grexit that both he and most Greeks would not like to happen. With youth unemployment at about 50 per cent and overall unemployment at 25, with millions plunged into poverty by years of austerity measures many Greeks saw Syriza as the only hope of a way out of their misery.

The present deal with the Troika ends on February 28. Tsipras will need to ensure the next installment of the bailout loans is forthcoming. EU finance ministers will be discussing the issue tomorrow, Monday, in Brussels. Even though Tsipras has turned down his rhetoric he still will need to make good on his promise to renegotiate the terms of the $269 billion in aid negotiated since 2010, including writing down some of the debt and doing away with at least some of the austerity conditions.

France’s president Francois Hollande congratulated Tsipras on his victory. Hollande expressed a “desire to pursue the close cooperation between our two countries in service of growth and the stability of the euro zone, in a spirit of progress, solidarity and responsibility that is at the heart of the European values we share.” At least at the rhetorical level, some of Hollande’s suggestions, such as the emphasis on growth, fit in with what Tsipras wants. Tsipras believes that public spending is necessary to create demand that in turn will fuel growth. This growth will provide the government income that will enable it to meet its debt obligations. Austerity and public spending cuts have created years of a shrinking economy, and very high unemployment especially for youth. Reduced pensions have meant reduced demand, as well as misery for pensioners. As a proportion of GDP, Greek debt continue to grow. If both sides meet in a constructive manner there could be a healthy rethinking of the terms imposed upon nations that need to be bailed out. However, many may prefer to take a hard line with Greece because they believe that if Greece is given easier conditions, other countries too will demand the same.

Written By

You may also like:

Entertainment

On December 3rd, veteran actress and musician Alicia Witt made her debut at 54 Below in New York City.

Business

While many hiring managers may overlook a white lie or two, a well-written CV will clearly include examples of your individual contribution.

Business

Alberta government juggles needs of AI data centre infrastructure while maintaining energy stability and affordability.