The conservative financial press reveals that scareomongering about the possible outcomes of a SYRIZA election victory was more than just wrong. In fact, the SYRIZA victory has opened the way for a much stronger negotiating position for Greece and other countries.
Under the heading EU Austerity Rethink Urged as Voters Back Protest Parties, Bloomberg reports
European Union leaders north and south of the economic divide are channeling an anti-austerity electoral backlash as they seek to push the case for an easing of fiscal policy throughout the euro zone….
Syriza leader Alexis Tsipras told reporters that the election result sent a message against austerity “from the country which was chosen to become the guinea pig” of the economic crisis.
After a six-year recession that wiped 25 percent, or 50 billion euros ($68 billion), off national gross domestic product, Greece recorded a primary budget surplus — which excludes interest and one-time payments — equivalent to 0.8 percent of GDP last year.
Any EU attempt to force Greece to go further and target an “unrealistic” primary budget surplus through more austerity would mean “a Syriza victory in national elections is on the cards,” said Michaelides.
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