As #Greece Votes, What Are Its Global Implications. New Democracy and #SYRIZA are the parties most likely to take the lead role in government. #ND vows to continue negotiations with the troika to ensure that Greece will receive its next tranche from the bailout loans, remain on a course of reforms and debt relief and thus in the eurozone. In this framework, ND has pledged to gradually ease taxes, as their policies sustain and extend Greece’s primary surplus. SYRIZA wants ND out of the picture, in order to renegotiate the bailout deals and soften their terms. They promise to reestablish social and salary benefits that have been cut back during the crisis (since May 2010) and ease tax measures that have been taken. If SYRIZA wins the elections and forms a government on Monday Greeks will run will run out of toilet paper. This is what ND-candidate Sofia Voultepsi implied just 48 hours before the elections. “bank run” vs “toilet paper run”? Speaking to Mega TV on Friday morning, former government spokeswoman Sofia Voultepsi claimed: People believe that bankruptcy is what we experience now. Bankruptcy is when imports, fuel, raw materials and medicines are being immediately stopped. This is something we have seen in #Cyprus, in #Venezuela, in #Argentina. When one of the news magazine anchors intervened and commented that “what you say sounds as if we will not have toilet paper,” Voultepsi replied: No, there is no toilet paper in Argentina and Venezuela. Therefore, I recommend, you do your supplies. In spite of the Nea Dimokratia fear-mongering elections strategy of “SYRIZA = default”, it is not helping the party of PM Antonis Samaras to raise its rates in polls, ND seems to have run out of convincing arguments and keeps chewing the same old candy... And JPMorgan is seeing the other type of run accelerating... As election looms, Greece sees large €8B deposit outflow this week vs €4B in first two weeks of January and €.3B in December. As Bloomberg notes, Syrizas success (or failure) will foreshadow the future of anti-austerity movements elsewhere in Europe. The Greek vote is being closely watched in #Spain, where the anti-austerity Podemos party is now running ahead of Prime Minister Mariano Rajoys party before a general election later this year. Podemos leader Pablo Iglesias even joined Tsipras at a rally in Athens this week. The government in Madrid has been scrambling to reassure markets that the situation in Greece wont spread to their country. Spain and Greece are totally different, Spanish Economy Minister Luis de Guindos told Bloomberg Television today in Davos. The bailed-out economies of #Ireland and #Portugal also have growing anti-austerity movements. If a new Greek government wins concessions, then Ireland and Portugal would be first in the queue looking for similar treatment, and other countries would be looking for leeway in meeting EU targets, columnist Cliff Taylor wrote in the Irish Times earlier this month. But leaders of those movements will have a hard time making their case to voters if Tsipras, Europes No. 1 anti-austerity poster boy, steps back from confrontation. Though #Alexis #Tsipras may promise fellow Greeks that its has the Super Camaro to steer Greece out of its austerity problems, he is not telling you the magnitude of the cliff he is headed into.
Posted on: Sun, 25 Jan 2015 02:18:43 +0000
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