Greece crisis: Europe on edge over snap election

[TomandJerry]

News that Greece faces a snap election on 25 January has been met with international concern, with the radical left scenting victory.

Alexis Tsipras, leader of Syriza, has vowed "austerity will be history" if his left-wing party wins on 25 January.

German Finance Minister Wolfgang Schaeuble warned there was "no alternative" to Greece's reforms.

Greece's economy has begun to recover after six years of recession but many Greeks want an end to austerity.

On Monday, Greek MPs rejected the presidential candidate nominated by Prime Minister Antonis Samaras, triggering the snap election.




Stavrov Dimas, a former European commissioner, secured the votes of only 168 MPs, the same number he had won during the second vote last week.

Setback

The defeat is regarded as a major setback for eurozone countries that helped bring Greece back from the brink in 2010.

Since then €240bn (£188bn; $290bn) has been spent helping Greece pay off its debts. In return for two major bailouts, the European Union and the International Monetary Fund demanded stringent austerity measures.
Alexis Tsipras, leader of the Syriza party, talks to reporters outside the parliament building in Athens - 29 December 2014Alexis Tsipras, leader of the left-wing Syriza party, said Monday was an "historic day for Greek democracy"
Mr Tsipras, whose party has a narrow but steady lead in opinion polls, said the rejection of Mr Dimas was a "historic day for Greek democracy".

Meanwhile, Prime Minister Samaras, whose centre-right New Democracy party dominates the current ruling coalition, said the public risked finding out "how easy it is to relapse into the deepest and most dramatic crisis" after the new election, the fourth in six years of financial crisis.

Investors fear Mr Tsipras' left-wing opposition party might act on popular resentment at six years of government austerity by seeking to overhaul the international bailout deal.

In response to the vote, the IMF said talks on completing a review of the bailout, which Greece would need if it were to leave the the EU-IMF programme, would take place only when a new government was in place.

 

[OGH's Libido]

You have over indulged in a patisserie, and are feeling a bit silly. What do you do?

A) Pay the bill, you want to be able to eat out again. Then waddle to the gym and put in some serious cardio. Whilst there, reflect on some of your decisions, consider just ordering a salad next time.

B) If you ever want to eat out again, you aren't thinking of it now. Smash the plates (naturally), burn the patisserie sign and try to steal the owners VW - it was their fault wasn't it?

 

[withdeanwombat]

Ignore the patisserie, in fact, everybody ignore the patisserie.

Close the patisserie.

More unemployed to eat the charity bratwurst.

 

[Herr Tubthumper]

Ignore the patisserie, in fact, everybody ignore the patisserie.

Close the patisserie.

More unemployed to eat the charity bratwurst.

Ah, but the charity bratwurst will build you up and ultimately make you stronger. Besides, given a choice of a pastry or a sausage which sort of person plumps for the former?

 

[The Spanish]

Ah, but the charity bratwurst will build you up and ultimately make you stronger. Besides, given a choice of a pastry or a sausage which sort of person plumps for the former?

Germany's post war success is built on undeserved hand outs after wrecking Europe and causing millions of innocent deaths so you might have a point. All the Greeks have done have maxed out their cards so it should be a walki in the park by comparison.

 

[Harry H]

I wondered why shares had taken a nosedive after recent recovery.

 

[The Spanish]

I wondered why shares had taken a nosedive after recent recovery.

Are you watching the Athens stock market but not global news then?

 

[Bevendean Hillbilly]

Germany's post war success is built on undeserved hand outs after wrecking Europe and causing millions of innocent deaths so you might have a point. All the Greeks have done have maxed out their cards so it should be a walki in the park by comparison.

Mostly right but the biggest factor in Germanys post war success vs the other major economies (France and the UK) was that they were not allowed to maintain a large standing army to defend herself from the Soviet Union. What that meant was that the UK and France were forced to keep huge military resources there costing billions whilst Germany could focus on reinvesting their GDP in industry.in the seventies when Britain was totally bust we were still expending nearly a QUARTER of our spending on military assets, nuclear and conventional forces, to stop The USSR invading Europe.

Some historians point to that as the main reason for Britains dreadful performance during the seventies and early eighties. By rights Germany should be compelled to repay the rest of Europe for defending her borders now that the red peril has evaporated.

 

[jakarta]

By rights Germany should be compelled to repay the rest of Europe for defending her borders now that the red peril has evaporated.

That would be the peace loving Russia that doesn't go around invading its neighbours then?

 

[Bevendean Hillbilly]

That would be the peace loving Russia that doesn't go around invading its neighbours then?

l

I think Germany could defend herself from Putin and his poorly trained bunch of fat militiamen if it came to that now. The restrictions on German military spending has stopped.

 

[The Spanish]

M

Mostly right but the biggest factor in Germanys post war success vs the other major economies (France and the UK) was that they were not allowed to maintain a large standing army to defend herself from the Soviet Union. What that meant was that the UK and France were forced to keep huge military resources there costing billions whilst Germany could focus on reinvesting their GDP in industry.in the seventies when Britain was totally bust we were still expending nearly a QUARTER of our spending on military assets, nuclear and conventional forces, to stop The USSR invading Europe.

Some historians point to that as the main reason for Britains dreadful performance during the seventies and early eighties. By rights Germany should be compelled to repay the rest of Europe for defending her borders now that the red peril has evaporated.

Even the tongue in cheek joking about Germany's wonderful economic performance and European dominance are in very very poor taste, and wilfully ignore stuff like your post above.

 

[Hastings gull]

Germany's post war success is built on undeserved hand outs after wrecking Europe and causing millions of innocent deaths so you might have a point. All the Greeks have done have maxed out their cards so it should be a walki in the park by comparison.

I assume you are referring to the Marshall Plan which involved the USA handing out millions to rebuild Europe after the devastation of the war years. Germany was included in this, and doubtless many in other countries were not best pleased to see the Germans do well out of it. Realistically, however, other countries needed a healthy German economy, and so it was probably wise to include Germany. The cynic would say that the Americans also wanted to build up the German economy to show that capitalism was superior to communism as practiced in the East Block, and I imagine that there was some truth to this. However, it was not just the USA cash - Germans regarded 1945 as Jahr null, and were themselves very determined to start again from scratch -their ingenuity and endeavour, plus successful economic policies, were equally the cause of the rebuilding of the nation.

 

[Hastings gull]

Mostly right but the biggest factor in Germanys post war success vs the other major economies (France and the UK) was that they were not allowed to maintain a large standing army to defend herself from the Soviet Union. What that meant was that the UK and France were forced to keep huge military resources there costing billions whilst Germany could focus on reinvesting their GDP in industry.in the seventies when Britain was totally bust we were still expending nearly a QUARTER of our spending on military assets, nuclear and conventional forces, to stop The USSR invading Europe.

Some historians point to that as the main reason for Britains dreadful performance during the seventies and early eighties. By rights Germany should be compelled to repay the rest of Europe for defending her borders now that the red peril has evaporated.

I think this is somewhat exaggerated, if I may say so, though this was clearly the case. BAOR gradually shrank to about 50,000 in the 70s, and the Germans paid towards it as their economy grew and ours in the 70s was the laughing stock of Europe. I don't think it was quite the financial sacrifice that you mention, though obviously it cost a few bob to keep BAOR running. The Germans had a huge army, by the way, and with conscription, numbered about 500,000. The Bundeswehr started in 1955, I think it was, and there was a huge furore when they arrived at the Castle Martin tank training area in Wales. As to whether this was the reason for Britain's appalling economic performance during the 1970s, I think it might have had more to do with the very poor industrial relations at the time and the willingness of trades unions to take regular strike action.

 

[vegster]

The Greek crisis never really went away so not a surprise.

 

[Triggaaar]

If the Greek people vote to ignore their bills and continue living the easy life, they should be cut adrift and sent into the dark ages. Let them be a lesson to all.

 

[Man of Harveys]

Greece's reversion to type - impoverished, badly governed, with tendencies both to blame everyone else than themselves and towards a crude nationalism - should surprise absolutely no-one.

 

[Lower West Stander]

Scary stuff.

Michael Lewis' book Boomerang makes some really interesting points. Unlike the other PIIGS, the Greeks never accepted responsibility for their mess, unlike say the Irish. It is part of the cultural make up to get away with what they can - even now many Greeks think everyone else to blame for the economic mess they are in. Until this changes, Greece will always be a thorn in the side of the Eurozone - it is quite ridiculous for them to have the same curency as Germany.

 

[The Spanish]

Greece's reversion to type - impoverished, badly governed, with tendencies both to blame everyone else than themselves and towards a crude nationalism - should surprise absolutely no-one.

The Greece that founded democracy and kicked out a fascist junta? Who's tax evading culture is arguably based on resistance to ottoman oppression?

Blaming others and resorting to crude nationalism is their type? Ironic that the country that is currently making them dance destroyed Europe when they did the same, yet we are digging out the Greeks.

 

[surlyseagull]

Sanctions on Russia have had a far reaching effect on parts of europe ,especially Greece ,Cyprus .The Russian investment tentacles have been temporarily amputated .

 

[RexCathedra]

the Greeks never accepted responsibility for their mess, unlike say the Irish.

The Irish, who are also dealing with a million people without access to health care, massive increases in infant mortality and suicide, and the return of previously-defeated infectious disases.

Oh, wait....

True, malaria hasn't returned -- because Ireland isn't quite warm enough....