Left Party SYRIZA election victory in Greece and the coalition government with another protest party of the extreme right wing who also opposes save politics, triggered no panic in international financial markets Monday .
But the discussion goes high among analysts and EU politicians on social media and in other forums about Greece going to leave the eurozone and reintroduce drachma as its currency.
Brussels is set on cooperation
Finance ministers of the euro countries met in Brussels on Monday afternoon.
– We are open for discussions and look forward to working with them, said Nederlands Finance Jeroen Dijsselbloem.
He leads the group of finance ministers of the 19 euro countries which in recent years has had the political responsibility for managing the sovereign debt crisis in Greece and other southern European euro countries.
Pending report from the troika
Dijsselbloem gave no promise of further debt relief before the meeting.
– We have already done much to ease Greece’s debt burden over the past few years in terms of interest rates, longer maturities for loans etc. We have always said that we continue to cooperate with them if Greeks undertakes it will have already been agreed, he said.
Eurogroup waiting for a report from the so-called troika before deciding how to meet the demands of Syriza government about further debt reductions.
Troika’s envoys from the three lenders – the European Union, the European Central Bank (ECB) and International Monetary Fund (IMF).
The debt burden increases , the economy sinks
The delegates had before year end interrupting his inspection in Greece because of the election.
Troika shall check whether the Greek authorities have complied with what they have promised.
Since 2010, Greece has received two major emergency loans totaling 240 billion euros (2000 billion. kr) from the EU and IMF. Meanwhile, private lenders in 2012 was forced to delete about half of its loans to the Greek government – just over 100 billion euros.
Despite this increasing debt burden because its economy is shrinking.
IMF missed by their projections
government debt has the liability reform in 2012 has risen from 157 per cent of total production (gross domestic product) to 177 percent.
IMF let in 2010 forward calculations that economy in Greece could get to grow as a result of the rescue package and the strict austerity measures that followed.
Instead, the economy has shrunk by 25 percent, wages have fallen as much, while unemployment among young people have risen above 50 percent.
A typical day on the exchange
The political earthquake in Athens triggered not the same panic mood in the international financial markets in 2010 and 2012.
The exchanges in most euro countries rose Monday while the Athens stock exchange had fallen 2 percent at 14 o’clock Monday. The fall was greatest in bank shares.
The interest rate on government debt in other crisis countries like Portugal, Spain and Italy fell.
Greece-election gives reformhåp in several countries
Sunday’s election victory for Syriza in Greece has given a fair wind to both left- and right-wing movements in Europe. The common denominator is resistance against crisis packages and austerity measures, reports AFP.
From the UK to Spain and Portugal are election landslide to Syriza hailed as proof that there is an alternative to the harsh budget cuts and austerity as European countries been through.
– The Greeks are going to get a true, Greek prime minister, not one of Angela Merkel’s errand boys, says the head of the Spanish movement Podemos, Pablo Iglesias.
The leftist Podemos movement is about to get a favorite stamp in front of the Spanish general election in November and aims to secure an absolute majority in parliament.
“Impact of EU face”
Also rightist parties, as euro-skeptic UKIP in the UK and the National Front in France, shelves SYRIZA election victory.
– This is a desperate room for help from the Greek people, where millions have been poor as a result of the euro experiment, says UKIP- leader Nigel Farage.
The National Front’s leader Marine Le Pen reviewing the Greek election result as “a monstrous democratic slap on the EU by the Greek people.”
Over Mature signal
Italian parties who oppose the economic crisis measures, says the Greek election result is a dire signal that saving policy does not work.
Also Italian Foreign Minister Paolo Gentiloni believe that the election results in Greece can give the EU a nudge toward more flexible solutions in budgetary and financial matters.
– There is no doubt that the Greek result strengthens Italy’s demands for more flexibility in the economy, he said.
Thumbs down for debt restructuring
Monday saluted Germany’s Chancellor Angela Merkel SYRIZA election victory with again to emphasize that Greece must stick to past debt obligations.
Also a director of the ECB, Benoit Coeure, made it clear that euro area central bank can not go on a debt relief.
– It is impossible for legal reasons, he says to the German newspaper Handelsblatt.
Unclear situation
Norway Europe Minister Vidar Helgesen (H) says that SYRIZA election victory was a clear message that voters want a new politics and a new government.
– It remains to see what policies they will lead. It will surely become negotiations forward. Although modest from voters was clear, there is no clear situation, says Helgesen Aftenposten.
Do you think the EU policy tightening by the euro crisis has been appropriate?
– There is no doubt that it has been necessary tightening. But we had been members of the EU, we would probably have been among those who believe we should have a more stimulating investment policy, said Helgesen.
He believes it is not right to put Syriza in the same category as other protest parties, as British UKIP and French National Front. He points out that UKIP and the National Front attacking the EU, not just politics.
– It is true that there is tremendous pressure on European cooperation. But we believe the answer to the challenge is no less European cooperation, but more. I think also the new Prime Minister of Greece will agree, said Helgesen.
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