While the Syriza party may be enjoying narrowing the lead in the upcoming snap elections in January/February, countries and institutions, namely the Troika and Germany, which were involved in bailing out Greece, are clearly not happy with potential outcome of the elections.
Shooting its first salvo albeit in a veiled attempt at cautioning Greek voters, a senior politician and member of ruling party, Michael Fuchs said that Greece would not get away with a blackmail, an oft repeated rhetoric by Alexis Tsipras of the Syriza party. Boosted by the vast protests the country has seen in the years after the sovereign debt crisis in the aftermath of a debt restructuring process that required Greek authorities to impose harsh austerity measures including cutting down on public sector as well as social spending, the latest twist to the Greek drama is being seen as a shot in the arm for Syriza to take the helm.
Part of the manifesto of the Syriza party includes a large write off of the debt from Greece which amounts close to €320 billion, which clearly does not go well with the members involved in bailing out the country.
In an interview to the Rheinische Post newspaper earlier this week, the German politician, who is the deputy parliamentary floor leader commented that “Greece is no longer of systemic importance for the euro”, clearly one of the harshest comments aimed clearly to the Greek voters. Antonios Samaras, has also tried to repeatedly stress on this factor quoting that “a vote to Syriza was a vote for chaos”.
While previously the Greece crisis triggered a panic especially in terms of the viability of the Euro, single currency, the latest rhetoric from other Eurozone members seems to clearly send a very strong message to Greece that blackmail wouldn’t work and that a Grexit; an exit of Greece from the Eurozone monetary union would be an option.
Other rhetoric lending support to the strict message came from the German finance minister Wolfgang Schaeuble, who warned that Greece should think twice before straying away from the path of economic reforms and that any new government in Greece would still be held responsible for the past pledges made for receiving the bailout.
Alongside the tough talk, there were also rumors that other senior ranking politicians from Greece were already in talks with Syriza in a bid to avert a potential crisis in the region as the Eurozone heads into a crucial quarter deciding on the fate of purchasing sovereign bonds in an effort to stave off the threats of deflation.
The ongoing Greece crisis could throw a wrench into the ECB’s plans as it would yet again bring to front fears over the fate of the Eurozone, the single currency as well as the ECB’s QE plans. The IMF, part of the Troika however has downplayed the fears of a funding crisis for Greece and will continue as planned on its review of the bailout terms once a new government would be formed.