While supporting Greece remaining in the euro zone, Syriza has said that it would not honor the terms of the bailout deal and stoked fear not only through European finance leaders but global markets. As The Atlantic’s Matthrew O’Brien writes, a New Democracy victory is even more “crippling” than a Pyrrhic victory. Syriza now gets to “watch the two big mainstream parties discredit themselves following Germany’s austerity orders”; New Democracy faces a “Sisyphean task” and Syriza is, in many ways, just where it wanted to be, in the position to say, notes O’Brien, “I told you so”:
There are two nightmares for Europe. The first is that Syriza takes power in a few months and forces a Greek exit. Once it became clear that monetary union isn’t irrevocable, depositors in weak countries would want to move their euros to strong countries. Bank runs would hit Spain and Italy overnight. It would take a huge dose of liquidity to put that financial fire out. As in, trillions of euros. But there’s a second danger. It’s that Syriza foreshadows future “anti-euro” parties in Spain or Italy. That too would be checkmate for the great European experiment. Those countries are too big and have too much leverage for Germany to bully. They are not, as the Spanish prime minister put it, Uganda.
The question now remains if New Democracy and Pasok can work together and renegotiate the bailout with Europe and the International Monetary Fund.
Samaras has said that he will reverse some tax increases and restore cuts to pensions, though he has not indicated where the funds will come from. Greece, unless it receives the next installment of bailout fund, will be bankrupt and out of money by mid-July — that is, by next month.
Related Care2 Coverage
Photo taken in Syntagma Square in Athens by Jack Zalium
Disclaimer: The views expressed above are solely those of the author and may
not reflect those of
Care2, Inc., its employees or advertisers.