It is a question that is being asked around the world given the country’s poor financial track record. The Greek elections have drummed up speculation around about what exactly they’ll mean for the country’s precarious economy. The winning party was Syriza, a left wing party, whose ideals have been met with great scepticism, as many doubt whether they can deliver on all that they have promised. The new reforms that are being proposed have raised questions about Syriza’s ability to bring forward issues surrounding the public’s individual accountability and meritocracy.
Before taking an in-depth look at the new party, you must take a glance back at the old regime. There is no doubt that previous Greek governments in recent times have failed Greece on almost ever level. They didn’t implement reforms when the country and its citizen needed it most, more importantly they failed to break the countries aging views on money. Those raised in Greece will be aware that the country has a dated attitude towards financial stability and these olds ways are what prior parties should have addressed. Syriza have been appointed as the new leaders after the Greek elections and looking back they have plenty of old habits to break.
Syriza have announced three key M.Os that they plan on implementing to stabilise the country’s economy. Firstly, they plan to no longer allow the establishment of private schools and private education establishments. They will rehire public sector employees whose prior dismal was deemed to occur because of “inadequacy to perform the role”. Lastly, they want to nationalise economic assets, even if that means halting the current privatisation of any national entities. It is fair to say that the outlook for the country after the Greek elections is one that is highly socialist.
Looking at what the future has in store for the Greek economy after the Greek elections doesn’t necessarily make for pretty reading. Uncertainty is almost a guarantee, as the new government wants to push through their new plans and programs. Three days after Syriza rose to power the Athens stock market took a big hit, as it dropped by a little under 20%, while the bank index was hit by 45%. The problem that this has and will continue create is it will drive investors away. The new powers that be in Greece need to realise that investors are needed to kick start the country’s economy, while they should be doing all they can to entice them and not drive them away.
Many investors, who have invested interest in Greece’s political situation, are slowly reallocating their wealth away from the country. Money seems to shifting towards those who bet against the Greek economy, as they choose to short stocks and derivatives, which is alarming to say the very least. If you are asking what the Greek elections mean for the economy? Then I’m afraid the facts say that the news isn’t going to be good for the foreseeable future.
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Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.