Photo: AP/Petros Giannakouris
Last night’s elections delivered a victory to Antonis Samaras’ conservative, pro-bailout New Democracy party. Despite the fact that there’s no governing coalition yet, details are emerging about expected requests to the European Union.New Democracy is in favour of keeping the bailout agreement, but campaigned on easing the terms of the austerity provisions.
Dow Jones’ FX Trader reports that the new government will request an extra two years to meet fiscal targets set by the bailout. According to Dow Jones, such an extension would require an additional 16 billion euros from creditors to keep the country afloat.
Additional requests include receiving 6.6 billion euros dedicated to funding private sector arrears in a lump sum rather than small installments, and aid to help address Greece’s 22 per cent unemployment.
The question for the new government, whatever its composition, is what sort of reception these requests will get at the upcoming European Union summit. Angela Merkel’s claim that she will not budge on the terms of the bailout should provide some indication.
However, something that will be on the Troika’s mind is the performance of probable opposition party SYRIZA, which was right behind New Democracy in Sunday’s elections. Should austerity continue apace and the economy deteriorate, leader Alexei Tsipras will be in a stronger position to challenge the government. Eurozone leaders would likely find him a less friendly negotiating partner.
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