Under the category of good news from Greece, The Financial Times reports Greek Unity Talks Hit Impasse.
Talks between Greece’s president and the leaders of the country’s three largest political parties on forming a coalition government reached an impasse on Sunday, increasing the chances that the country will hold fresh national elections in June.
In spite of recent fearmongering by Germany and New Democracy leader Antonis Samaras, polls still show Syriza (radical left) leader Alexis Tsipras in the lead for Greek Prime Minister. Syriza's lead has generally been shrinking, but all of the polls have Syriza in the lead. Polls are pretty volatile. Leads swing from 3 to 10 points depending on polling organization. Wikipedia has a nice summary of the Greek Election on January 25.
Berlin (AFP) - Germany's finance minister warned Greece that any new government must respect commitments made by its predecessor, as the country moved closer to early elections that EU officials fear would be won by a radical leftist party.
As late as yesterday I read numerous mainstream media reports that Syriza would win by three to five percent and would need to form an unstable coalition to rule.In contrast, here was my January 19 prediction (and rationale): Expect a Blowout Win by Syriza in Greece.Syriza Trounces New Democracy The final votes are not counted, but exit polls show a blowout, with incumbent party New Democracy going down in flames.
Since the beginning of September, yield on the Greek 10-Year bond has gone from 5.53% to 8.05% with a spike high of 9.28%.Inquiring minds may be wondering what's going on. More than likely yields are up for a number of factors.
Can beggars be choosers again? Judging by the drop in Greek bond prices, the answer is no. As Bloomberg reports, Greek PM Samaras is pushing back against Troika demands for up to $3 billion more savings (i.e. cuts to spending) in 2015. The impasse risks leaving Greece without a backstop on Jan. 1 after the program ends, they said.
Sticking with quotes from the Guardian Live Election Blog, New Democracy leader Antonis Samaras "Will Honour Commitments to the EU".
Samaras summarised his speech in English:
His party would honour commitments to the EU.
It was a victory for all Europe.
A call for all political parties that share objectives to form government.
Sacrifices of Greek people will be reflected.