After wining of SYRIZA in parliament election in Greece some nervous situation has arised.
Final results of elections are:
SERYZA - 36.34% (149 seats in Parliament)
ND (former leading political party) - 27.81% (76 seats in Parliament)
Others are not so important.
The main promise of SYRIZA is to set aside TROIKA's agreements and recommendations. Alexis Tsipras said Greece will no longer follow ECB, WB and WMF advices. They will no longer cut their spending. Also they want to decrease public debt of Greece by refusal from world bank's funding. The possibility of default is now bigger than just one year ago. All of that may lead to GREXIT (Greece will leave the eurozone)
FT Says: Syriza the victor in Greece’s general election, has agreed to form a government with the rightwing anti-bailout Independent Greeks, the leader of the latter party said after talks in Athens on Monday.
As my own opinion I think that greek people just fed up of promises like "tomorrow it will be better" and they want to live like they did in 2004-2008 period. In 2008 the GDP of Greece was $341,6 billion. Now it's just $241,7 billion (the shortage is about 25% percent during the last five years). If we compare the developing economy of Egypt it's now bigger that the Greece's one. That's sad news. People are going to live worse (35.7% at risk of poverty or social exclusion )
But just a little mount of that SYRIZA's voters thought about what such changes will cost them in future. Exit of Greece from eurozone will push the unemployment further while the returned lira currency would be devalvated and inflation will hit the country. I hope that SYRIZA will not do ANYTHING of that they promise to do. It will cause the unpredictible consequences for the economy.
All of that makes the euro currency continue to fall. Today it costs just $1.12 and this is not the end of the falling the euro down.
What can happen next? Nobody knows exactly.
But we must respect people's choice.
