Greek coalition deal close

20/06/2012

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Greece went to the polls last weekend for the second time in six weeks. This time however the New Democracy Party won a majority and its leader quickly began trying to forge a coalition government.

The New Democracy majority may have been small but with willing political partners it is expected  to be enough to form a workable government. Today June 20, 2012, Antonis Samaras, leader of the New Democracy party, will be sworn in as prime minister. At time of writing the Greek coalition talks were ongoing but reportedly close to a finalised deal.

The people of Greece need a government but whether a coalition can bring stability to Greece is not known. Their debt crisis continues and too many people in Greece are suffering. As they struggle on in poverty tax dodgers and system abusers in the country prosper. These two issues will need urgently addressing by the new government.


The Markets around the world are still faltering as Greece forms its new parliament. There was no huge surge in the markets on the back of the Greek election, as the situation remains unstable. Angela Merkel the German Chancellor and leading light in Europe right now, has made it plain that the Greek bailout will not be renegotiated.

Yesterday President Obama speaking, as the G20 summit in Mexico drew to a close, said that Europe knows what it has to do. The talk is of leaders having to make tough choices and decisions. Of course those tough choices rarely affect those who make the decisions. It is easy to play politics when it is someone else who will experience a massive drop in income, or the loss of a home, for example.

President Obama should also publicly acknowledge that Europe's financial woes stem in so many ways from the USA. 

Samaras is meeting with Greek President Karolos Papoulias prior to being sworn in as Prime Minster. Updates will follow....


Latest: Samaras has been sworn in as PM. "The ceremony came shortly after he agreed a coalition government with the Socialists (Pasok) and the smaller leftist party, the Democratic Left. Mr Samaras took the oath at a Greek Orthodox ceremony in Athens."
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Greek New Democracy Party hollow victory

18/06/2012

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The second Greek Election in just six weeks is over. In reality though it is far from over. The winner by a majority was the New Democracy Party with 29.7% of the vote. It secured 129/300 seats. Hardly a resounding vote of confidence from the people. Enough however to form a government if they can find a political party willing to do business with them.

The Greek Parliament and the people now face many challenges. First and foremost of course is forming a government and quick. Political vacuums are bad news. They can lead to military coups and revolutions.

Who the NDP choose or rather who is prepared to play ball could also impact on the Greek people. Second place in the election was won by the Syriza Party who took 26.9% of the vote and secured 71/300 seats. Such a close run race means that plenty of people will be happy with a New Democracy coalition, but many will not.

The New Democracy is a right wing party. If it works with the Pasok socialist party to form a coalition it may not work. However both of these parties are pro the EU bailout. In times like these political allies may come from opposing ideals. What is being seen as the most important factor is who is pro and who is anti the bailout.

Syriza is anti bailout. This party will be hard to ignore in any new parliament. With such a large number of seats and votes it will have a voice in government. This could mean that it will have power to wield.

Merkel in Germany and Obama in the US are happy that the New Democracy Party has won the majority. They of course do not have to live in Greece under the austerity measures previously agreed. It is fair to say that all Europeans leaders will be happy with the initial outcome of the Greek Elections. The money men and women who manipulate our lives have already expressed their pleasure. How so? By boosting the stock markets.

There is however still a long way to go.

All Antonis Samaras won in effect was the right to be first to hold coalition talks. If the Pasok Party teams up with Samaras it will be a similar situation to the UK. That is a coalition made up of the first and third place in the people's vote. Hardly the people's choice.

Both the Pasok and the New Democracy Party have governed Greece for many years. Both are therefore blamed by many for the economic crisis Greece is facing. Syriza being a fresh new party has said that it will not join forces with others to form a coalition.
No such moral stand point by the old guard.  

Socialist PASOK leader Evangelos Venizelos has already come up with a novel suggestion. He has proposed politicians forget the usual procedure and go for a four-party coalition between New Democracy, Syriza, PASOK and Democratic Left.

It is worth noting that anti bailout political parties saw their share of the second vote in Greece increase from six-weeks ago. The Neo Nazi Party Golden Dawn had its share of the vote reduced compared to the earlier election.

Europe may have breathed a sigh of relief but now it is holding its breath as it waits to see if forming a Greek government is possible. Germany has already warned Greece that the bailout is not open for re-negotiation.
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Will Greek election hail EU exit

16/06/2012

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In May 2012 the Greek people went to the polls. The national election was not due until 2013 but the resignation of former leader George Papandreou meant an early election was necessary. The post of leader was filled temporarily by a technocrat, Mr Lucas Papademos, and he led an interim government,

The Greek people have endured a terrible few years and it looks like it will get worse, before if ever it gets better. In May the people failed to return a majority government. The main players were unable to form a coalition government and so a further election was scheduled for June 2012. This weekend the people will vote once more. Has enough changed to return a majority government this time?

It will be a hard one to call. The Greek people could choose to elect and support a pro-bailout government or an anti-austerity one. It is not a straight forward choice however between the right and the left of politics. The Greek political front runners include communists, the extreme right, socialists, neo nazis and conservatives.

If the vote is split again it will be hard for any party to win through. However since the failed election in May the political front runners have been campaigning hard. Up until the death each party has been trying to win over voters and make that one last push.

Currently many are predicting a win for the liberal conservatives, the New Democracy Party. However some see these politicians at the heart of Greek woes. As the party in office during the economic crisis the New Democracy Party failed to resolve the situation. When it comes to it though will the majority of Greeks see them as the only sensible way forward?

Behind the scenes preparations are underway for an EU exit by Greece, if it is deemed necessary. To the cameras people maintain that Greece will not leave the Eurozone and no EU countries want them to leave. Whether that is what is said behind closed doors is doubtful

Should Greece leave the EU it will be a protracted affair. It will not be easy for any country in Europe and possibly beyond. The economic fall-out will reach far and wide, but what of if they stay?

How much longer can the Eurozone farce continue? One that demands the people suffer whilst the banking sector continues to crumble. One that increases unemployment to disastrous levels? 

Related reading regarding the USA and their involvement with the EU crisis since 2008 here

Tags: Greek election 2012, EU crisis, Greek New Democracy party, second election in Greece, Eurozone exit, Greek politics, Greece
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Greece, Legarde says the unthinkable

15/05/2012

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Not so long ago it was unthinkable that Greece could leave the Eurozone. Now it seems a distinct possibility. Today IMF chief Christine Legarde has finally voiced the big IF Greece leaves the EU.

Whilst Legarde has continued to maintain that Greece will stay in the EU she has had to recognise that is by no means a certainty. The Greek election gave no political party a clear mandate to rule and successive parties have found it impossible to form a coalition. It now appears that Greeks will go to the polls once more. Perhaps now the gravity of the situation is plain for all to see a higher turnout will follow.

That said, it may not.

So many Greeks obviously feel dispirited with the current political parties of Greece. Even more will be totally disillusioned about the EU and their country's membership. Waiting in the wings of course is German Chancellor Angela Merkel. Like an adept puppeteer she pulls the strings as around her European leaders fall and economies crumble.

Christine Legarde, head of the IMF, today, May 15, 2012, has said that the Eurozone, IMF and Europe must make preparations for if Greece leaves the EU. If they do other countries are sure to follow. As the latest talks to try and form a coalition government fail it has been announced that a new election will be held in June. More expense for the troubled Greek people. Instantly the Greek stock exchange took a tumble. European markets nose dived and the economy has flatlined in response.

A caretaker government will now hold the reins of Greek government until the expected election in June 2012. Greece is not alone as a country in crisis.

Tags:Greek election, Greek coalition, IMF, Christine Legarde, Greece may leave EU, Eurozone
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