European Debt Crisis

A guide to the Greek elections

Stephen Beard Jun 15, 2012
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European Debt Crisis

A guide to the Greek elections

Stephen Beard Jun 15, 2012
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Jeremy Hobson: And we’ll start with the mood in Greece, ahead of this weekend’s crucial elections.

Christos Karanatsis: I think whichever way, in and out of the euro, things will go the way there are about to go — which is they will become worse for the next probably three to five years.

Anna Maria Hagiafrati: I’m very angry against our politicians and against Europe in general because I think that we didn’t deserve this situation.

Hobson: That was 55-year-old Anna Maria Hagiafrati and 32-year-old Christos Karanatsis speaking with the BBC.

Marketplace’s Stephen Beard joins us now live from London to lay out the possible scenarios for this weekend’s elections and what they might mean for the rest of us. Stephen, good morning.

Stephen Beard: Hello, Jeremy.

Hobson: Well, tell us what might happen this weekend.

Beard: Well there are two likely scenarios, one good and one bad from the perspective of investors. First, the conservative New Democracy party could win most seats and form the next government and that would be a government that would broadly stick to the terms of the bailout of Greece. That would mean the bailout money would continue to flow and Greece would carry on in the eurozone. That, as far as the markets are concerned, would be a good outcome.

Hobson: And, what’s the bad outcome then?

Beard: Well again, from the investors point of view, it would be if the left wing group Syriza forms the next government. They could reject the bailout terms altogether. The cash could be turned off and Greece could crash out of the eurozone with very unpredictable consequences for global markets. If Syriza does win on Sunday, all eyes would then be on Germany to see if the Germans are bluffing or whether they really would cut off the cash to Athens and pull the plug on Greece.

Hobson: Marketplace’s Stephen Beard in London, thank you.

Beard: Ok, Jeremy.

***

See our guide here for what happens if Greece defaults.

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