Tuesday, January 27, 2015

Greek election results

Earlier I had predicted the following would be the result of the election:

146 SYRIZA
83 ND
18 POTAMI
16 XA
14 PASOK
14 KKE
9 ANEL

The final results are in, and I was fairly close.

149 SYRIZA
76 ND
17 XA
17 POTAMI
15 KKE
13 ANEL
13 PASOK

SYRIZA, the Coalition for the Radical Left, will form the new government. They formed a very quick and somewhat surprising coalition with ANEL, a right-wing party. The one big thing the two parties have in common, however, is their opposition to austerity. 

Tsipras was sworn in as PM yesterday. He says he does not want Greece to leave the Euro or the EU, but also demands the country's debt by cut by as much as half. I for one do not see this as possible or realistic.

The 'ball' is now in the court of the European Union. They can do one or two things. One, is to stand firm and say no; this will almost certainly lead to a Grexit. Two, is to bend over and take it, cancel half the debt as Greece demands, and do whatever needed to keep Greece in the EU. 

Once the EU decides which of these two paths they plan to take, I will let you know. 

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