Monday, September 21, 2015

Greece: Syriza, the clear winner – Deutsche Bank

FXStreet (Delhi) – Research Team at Deutsche Bank, suggest that in Greece, Syriza have secured a larger than expected victory with 35.5% of the votes, ahead of New Democracy at 28.1%. The victory means Syriza are set to secure 145 seats, with ND at 75 seats.

Key Quotes

“A coalition with current partners the Independent Greeks (who received 3.7% of the votes) looks set to remain in place with a majority total of 155 seats. Meanwhile the Popular Unity party, formed by Syriza rebels, looks set to fail to garner enough votes to market it into parliament.”

“DB’s resident Greek expert George Saravelos notes that the election outcome therefore represents a re-affirmation of the prior political status quo with one key difference: a strong political endorsement of Tsipras’ decision to compromise with European creditors and maintain Greece’s Eurozone membership.”

“George notes that with the Syriza parliamentary group now consisting of more moderate MP’s and the vast majority of opposition parties also in support of European compromise, the election is now likely to mark a period of political stability in Greece.”

“A potential successful conclusion of the first program review would open the door for the provision of additional debt relief to Greece, although this won’t come before the outstanding issues around pension and collective wage bargaining in particular are resolved. Importantly however, with Tsipras gaining the political endorsement to compromise with Europe, continued progress in coming months on program implementation should be possible.”
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