Grexit Fear, No More

election graffiti
election graffiti

(Photo found by Robert Wallace)

It’s official, Alexis Tsipras, leader of the lefty-Syriza party, was sworn as Greece’s prime minister and he brings the Indpendent Greeks with him.

The population seems to be relieved. As it stands, Tsipras and Kammenos, leader of the right-wing Independent Greeks, share the hope to “abandon austerity and seek a debt write-off, while remaining a member of the eurozone”, according to the Financial Times.

Following through with this would be a big deal. For most Greeks, the build-up to the federal elections had many scared of the potential outcome for the debt-burdened country.  Depending on the results of the election, there were talks of leaving the eurozone in the seasalt-spattered air, and the affluent Greeks were  a little nervous that they would be targeted through high taxation. It seems that both party leaders are against these policies.

Let’s just say Greece is in a teetering position. With a debt standing at 170% of its GDP, it’s no wonder that Chancellor Merkel was a bit nervous about a Grexit from the EU.  The unemployment remains high (25.8% as of October 2014) and the bailout loans totalling 240bn Euro.

However, with these election results, there are plans to address these issues and tighten up policies without intense austerity measures. The new has a lot of bargaining to do with creditors and the ECB, but time will tell.

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