The bankrupt Greece are threatened again before troubled times. After all three attempts have failed to elect a new president must take place on January 25 early parliamentary elections. The stock market in Athens responded extremely nervous, the leading index ASE broke at times by more than eleven percent to 756 points a – the lowest level in two years. Recently, the drop was still at about five percent. The International Monetary Fund (IMF) announced now, to temporarily suspend its aid payments to Greece.
The next loan tranche could be paid only if, after the elections, a government was formed, said the IMF Washington. “Greece has no urgent financial needs,” said IMF spokesman Gerry Rice in a written statement. He did not give further details.
Greece could get seven billion euros in emergency loans. Previously wants the troika of the IMF, European Commission and the European Central Bank (ECB), but check its Greek finances. If the result is negative, and therefore does not flow the money, Athens threatens the assessment of the incumbent government from spring insolvency.
What happens now with Greece now?
had After the failed presidential election In addition to the shares and Greek government securities with price falls responds: The yield on ten-year bonds rose temporarily to 9.7 percent from 8.5 percent in the final business of Christmas Eve
The former EU Commissioner Stavros Dimas failed presidential candidate also. Third time the required majority of 180 votes. Only 168 deputies voted for him. So that Parliament must be dissolved and new elections are called.
Greece face an uncertain future
In the financial markets, this causes unrest since the reform critical SYRIZA party in opinion polls front and thereby saving policy could be jeopardized. The current aid program expires at the end of February. Without an agreement with donors, the future is uncertain.
In Frankfurt, however, investors reacted scared only briefly. The German DAX limited its losses after the initial shock again and then traded 0.5 percent weaker at 9873 meters. Following the announcement of the election results he had lost 1.4 percent. The ten-year government bond that is often driven as a safe haven, marked a record low of 0.564 percent. The euro reacted against it and hardly was $ 1.22
While a Greek exit from the euro zone is not likely, but the uncertainty willing investors worry -. Therefore, the significant decline in the stock market, said . Manos Hatzidakis, an analyst at Beta Securities in Athens
Tsipras rejects austerity from
Clearly satisfied appeared opposition leader Alexis Tsipras on TV: “Today is a historic day for the Hellenic Republic,” said Tsipras. The Parliament’s decision signaled the end of austerity which gave rise to the “plundering of the people” through the conservation requirements of the government. This change will also soon seal the Greek people in the elections, Tsipras was confident.
According to surveys of the Left Tsipras would emerge from elections as the strongest, but the absolute majority fail. Tsipras rejects the austerity and reform policies of the government and international donors. This could lead to lengthy coalition negotiations and perhaps again early elections.
Schäuble calls for compliance with the agreements
In a lot of concessions can not hope the future Greek government in the EU. German Finance Minister Wolfgang Schäuble (CDU) told the Greeks at the weekend, what he expects from Athens. “Every new government must comply with contractual agreements of the predecessors,” he told the newspaper “Bild”
Also, the CSU politician Hans Michel financial Bach spoke out after the financial against a concession by EU partners. “Greece can no further discount expect,” the chairman of the SME Union told appearing in Berlin “Tagesspiegel” (Tuesday edition).
Follow probably only for Greece itself
Observers expect the meantime little effect of the Greek government crisis to Europe. DIW chief Marcel Fratzscher said: “Many other crisis countries in Europe are on the right track, important reforms have implemented and see first economic success.” A possible government takeover of the Left could even be a chance. “Although the political earthquake due to a possible government takeover by SYRIZA could have short-term costs, but also lead to a necessary new beginning for the country.”
Greece’s political crisis had been necessary and unavoidable, Fratzscher said. “The performance of Greek governments in the past five years was shockingly bad. The Greek governments have mainly tried to secure their political power and economic sinecures, but not to implement reforms and to make their country a future.” Although SYRIZA could make some reforms reversed, as government would the Left Alliance, however, understand that Greece is dependent on the euro and Europe’s help, Fratzscher said.
Also, the chief economist at Berenberg Bank, Holger Schmieding, sees the elections only a threat to Greece, but not for the euro zone. “A Greek accident has become a big risk. However, especially for Greece itself,” said Schmieding. That Greece could exit the euro, is likely to be 30 percent. However, the euro zone Concerning operative now has enough tools to counter the risk of contagion. The Syriza it will be difficult to convince the creditors of his policy. For Greece, it should be more difficult, therefore, to obtain new loans or even debt relief by international donors.
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