01-30-2015, 01:00 AM
The new Greece of Alexis Tsipras will run out of money by early March. It will then face a series of escalating crunch points that will end in default and a return to the drachma unless it can reach a deal with EU creditors.
Greek coalition braces for debt showdown as Germany rattles sabre - Telegraph
Still, Greece’s great lurch leftward may embolden similar movements in larger, comparably troubled European states. Spain’s Podemos party leader Pablo Iglesias hailed Syriza’s victory. And there may be reason to believe Podemos and other Euro-skeptics could see a plain gains in Spain in a series of local and national elections expected throughout this year. In a recent poll by the country’s El Pais newspaper, Podemos was favored by 28 percent versus the governing PP party’s 19 percent.
Did Greece just trigger a full-blown crisis? | Talking Numbers - Yahoo Finance
With Greece’s government and its creditors in no mood to compromise, investors are growing skeptical on how long the European Central Bank can insulate the rest of the region’s debt markets from the turmoil.
Tsipras Standing Ground Has Investors Fretting Over Italy Bonds - Bloomberg Business
Officials offered several areas for potential compromise with the new Greek administration. Thomas Wieser, the European Union official in charge of preparing meetings of euro-area finance ministers, told Austrian radio ORF that Greece’s official creditors will probably extend the deadline for the country to qualify for its next aid disbursement and Malta’s finance minister, Edward Scicluna, said the troika is also likely to ease its demands for further economic overhauls in Greece.
EU Hunts Formula to Keep Greece in Euro Zone - Bloomberg Business
If Greece were to adhere totally to the previous terms, over the next five years it would make resource transfers of about 20 percent of one year’s GDP. From the point of view of the creditors, that’s a trivial sum. From the point of the Greeks, however, it’s crucial; the difference between a primary surplus of 4.5 percent of GDP and, say, 1.5 percent of GDP for the Greek economy and the welfare of its citizens is huge.
Thinking About The New Greek Crisis Paul Krugman NYTimes.com
Officials close to Merkel say they still believe Tsipras will ultimately change course, dropping his more radical election pledges and signing up to the economic reforms that Berlin and its European partners have insisted on as a condition for handing over more aid that Athens desperately needs by next month to service its debt. But the past days have sown doubts about this hypothesis.
Germans Are In Shock As New Greek Leader Starts With A Bang - Business Insider
Although barely in the country for the past three years, he won a record 135,638 votes as a candidate in Athens’s second electoral district – by far the toughest area to contest. No other Syriza MP came close – and unlike any of them Varoufakis had been in politics for only three weeks.
Yanis Varoufakis: maverick economist with Greece’s fate in his hands | World news | The Guardian