Greece elections: What will it mean for the eurozone if left-wing party Syriza wins?

http://www.independent.co.uk/news/world/europe/greece-elections-what-will-it-mean-for-the-eurozone-if-leftwing-party-syriza-wins-10000213.html

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Austerity measures could be put to an end in Greece as the rise of anti-establishment party Syriza threatens the country’s conservative leadership and strict eurozone bail-out agreements.

The country is seeing the left-wing group having overtaken the conservative New Democracy party, led by Prime Minister Antonis Samaras in a ruling coalition, with polls currently showing a four-point lead at 31.1 per cent.

Greece’s elections held tomorrow are being closely watched by financial markets as a victory by Syriza, with party leader Alex Tsipras, could trigger panic in the European Union and also International Monetary Fund lenders while the value of the Euro is at its lowest against the Pound Sterling in seven years.

Creditor countries such as Germany would have to agree to an extension of the bail-out plans committing to €240 billion (£184 billion) if the party wins, which equates to €30,000 (£23,000) per citizen.

However, a Syriza victory could also push Greece close to bankruptcy or signal a complete exit from the 19-nation eurozone, dubbed as a “Grexit”.

Alexis Tsipras is the head of Greece's main opposition party The debt crisis wiped off a quarter of the country’s economy and unemployment remains around 26 per cent and 60 per cent among the young.

Tsipras had described the austerity measures Greece has had to implement since 2010 in return for the bailout money as “fiscal waterboarding”. His rising popularity comes amid desperation for change since jobs were cut and prostitution had soared by 150 per cent by 2013, with some reportedly charging as little as €5.

A complete withdrawal could deeply damage the eurozone due to heavy losses on loans paid out by economically-stronger nations and it could even influence other countries in debt to abandon their own bail-out agreements.

In an opinion piece for the Financial Times published on Wednesday, Tsipras denied that the party would take drastic measures in its beginning.

He wrote: “We have a duty to negotiate openly, honestly and as equals with our European partners. There is no sense in each side brandishing its weapons.

“We have not been in government; we are a new force that owes no allegiance to the past. We will make the reforms that Greece actually needs.”