Next elections in Greece will be won by the Radical Left Coalition (SYRIZA), a party that will not get along with representatives of international creditors, and Greece will default and exit the euro area, according to what economist Nouriel Roubini said yesterday. “New Greek election will lead to victory of Syriza and collision course with Troika that will lead to default and exit” said Roubini, in a Twitter post shortly after the announcement that Greece will organize new elections. Troika is composed of representatives of IMF, EU and the ECB. Roubini is also known as “Doctor Doom” for his pessimistic forecasts.
Greek Presidency spokesman announced Tuesday that Greece will organize new elections, as leaders of political parties have agreed to form a new government. Greek parties failed to agree on forming a government after the elections in early May when the political parties that supported austerity programs have had very poor results.
Radical Left Coalition is favorite now in the polls, ahead of New Democracy. According to the polls, the Left Coalition, which opposes the austerity measures of external aid agreement would get over 20% of the vote in these elections. The party who gets the highest score in parliamentary elections gets 50 seats in addition to what is entitled by elections. In early May elections, New Democracy won the most votes and received 108 seats, compared to 52 of SYRIZA.
The country’s two largest parties, which ruled the country in recent decades, New Democracy and PASOK, have not obtained sufficient seats to form the government and the negotiations last week and earlier this week have not led to a political consensus. New Democracy and PASOK together had 149 seats, out of 300. Greece must present to representatives of international creditors by the end of June a list of measures to save 11.5 billion euros in order to get more financing.
SYRIZA and other political parties in Greece have rejected the austerity measures which determine foreign aid. However, Germany, eurozone’s largest economy, and other countries have sent Greece a message from the monetary union that a renegotiation of the agreement will not take place.
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