It looks like Greece will continue to absorb more Eurozone wealth.
The projections showed New Democracy winning 29.5 percent and 128 seats. The radical left Syriza party, which has vowed to repeal Greece’s international bailout deal, was expected to come in second with 27.1 percent and 72 seats. PASOK trails with 12.3 percent and 33 seats.
The small Democratic Left party was projected at winning between 5.5 and 6.5 percent, with the right-wing Independent Greeks tied with Golden Dawn at 6-7.5 percent.
The party that comes first in Sunday’s vote gets a bonus of 50 seats in the 300-member Parliament and gets the first try at forming a new government with a majority in Parliament. If they fail, the next highest party gets to try.
New Democracy and the socialist PASOK – would have enough seats to form a coalition together. They have both expressed a willingness to work with other European nations to stay in the 17-nation eurozone.
Read more here.
I’m very surprise by how close the Syriza party came, and this doesn’t bode well. You see, I know communists. Europeans are especially familiar with them. Democracy only works for them when they have the majority of votes. Elsewise they despise democracy and reject the will of the people.
Here’s what I believe is in store. Greece will, for now, remain in the Eurozone. They will continue to accept bailout money. They will never pay it back. The very first time they try to impose any meaningful cuts to their spending we will see riots and anarchy. The Greeks will blame the Germans for their harsh lives. The leftists will gain popularity. They’ll have new elections and out of the Eurozone they go.
I could be wrong, but I think the Germans and the rest of the Eurozone are engaged in wishful thinking. For two years now, Greece has accepted bailout money keeping their government afloat. In spite of the insistence that Greece make substantial government financing reforms, they refuse to do so. They simply don’t have the political will to make any substantive cuts. The narrow margin of victory for the New Democracy party assures us that not only do they not have the political will, their political clout is evaporating as well.
So, they will negotiate and delay and the Euro will continue to float the government. This will be a bottomless money pit. Can anyone make the case that the Greek people will eventually be able to stand on their own? When was the last time they showed an ability to generation sufficient wealth to run their own government? The entire global economy can take an upturn and the Greeks will still want to retire at age 40. They will still hate industry and expect the government to provide them jobs and pay. The Eurozone would do themselves and the rest of the world a great favor if they just cut them loose.
Spain, I think can be saved. Italy, I still don’t know. Iceland should be fine. Portugal?? But, Greece? Greece is hopeless.