Analysis of Greek Elections and the Victory of Anti-Austerity Opponents

The parliamentary elections in Greece were held on December 25. The latest results indicate that the 'Syriza' party is leading with 38% of the votes. The implications of this party's presence in parliament as the majority will create many ambiguities in the economic and monetary domain of the Euro. Radio Farda has interviewed 'Antonios Nestoras', a Greek expert from the Institute of European Studies in Brussels. He believes that if negotiations between Germany and Syriza regarding Greece's debts do not take place, there is a possibility of this country exiting the Eurozone. Why are the Greek elections extremely important for the future of Europe? Antonios Nestoras: Greece has received many loans from European institutions and countries. To repay these loans, the country must undertake fundamental reforms in government spending. The 'Syriza' party opposes these reforms and wants them to be halted. Additionally, Syriza's economic program violates the agreements signed between Greece and European institutions. Leading the government by Syriza means questioning all agreements between Greece and its creditors, and the market will react negatively to this issue. Greece has become a symbol of repaying bank debts. We are facing a tangible problem, not a theoretical one. If international and European creditors stop their support for Greece, where will this country secure its financial resources? If a new government questions past financial agreements, other international commitments become worthless, and this will pose many problems for Europe. What changes will the victory of the leftist 'Syriza' party bring to Europe? Should Europe prepare for Greece's exit from the Eurozone? The Syriza party has promised voters to initiate new negotiations regarding debts with Europe, especially with Germany. Now, two scenarios are likely. First, Germany may refuse to negotiate with Syriza. This would mean political, economic, and social problems in Greece, and as a result, this country would be unable to repay its debts and would be forced to exit the Eurozone. The second scenario is that Syriza and Germany begin negotiations to find a mutually acceptable solution. This would mean a fundamental change in European economic policy and also indicate that austerity policies, which have been implemented over the past five years, are negotiable. Is there any possibility of flexibility in the decisions of German officials? What is France's stance? German officials at all levels have clearly stated that they will not enter into new negotiations regarding Greece's debts, and Greece must adhere to its commitments. Germany might propose extending the repayment period of the debts. However, this proposal will not convince Syriza. They seek fundamental changes in European economic policy. On the other hand, France is also not in a position to oppose Germany and actually prefers to currently follow Germany, which leads the European economy. Are the demands of 'Alexis Tsipras', the leader of Syriza, for part of Greece's debts to be forgiven and for renewed negotiations with international creditors reasonable and realistic? If there is political support from other countries, there is a possibility that his demands to end austerity programs in Europe could be accepted. However, looking at the positions of governments and parliaments of various European countries, we realize that this is practically impossible. What will be the consequences of Syriza's victory for other European countries, especially Spain and Portugal? Syriza has a very good relationship with the leftist Podemos party in Spain. These two parties have an economic program and their goal is to change economic policies in Europe and end austerity programs. Spain and several Southern European countries have problems similar to Greece. The Podemos party and other leftist parties opposing austerity policies are looking to Syriza's achievements. Syriza's success at the European level will also be their success.