Greece goes to the polls again

Greek prime minister Alexis Tsipras is still likely to lead the next government, with one poll giving him an approval rating of 61%.

The Greek prime minister, Alexis Tsipras, has resigned, triggering an election for 20 September. With Syriza hardliners in revolt since Tsipras agreed an €86bn bailout deal in July, his administration has been relying on opposition votes in parliament. The hardliners have formed a new party Popular Unity to contest the election, but Tsipras is still likely to lead the next government, with one poll giving him an approval rating of 61%.

What the commentators said

Yet with the election coming only a month before the first bailout review in October, and a caretaker government until then, there will be little time to pass major reforms, said Jennifer McKeown of Capital Economics. If Greece slips further into recession, the enthusiasm of the remaining Syriza MPs for further austerity could be sorely tested. The bailout deal could still unravel quickly. Syriza cannot be relied on to reform Greece as boldly as required, agreed The Wall Street Journal.

"Even the supposed moderates retain a deep suspicion of private enterprise." The bailout deal itself is flawed, with tax rises and spending cuts that won't address Greece's fundamental growth problem. Greece requires bolder privatisation and deregulation than foreseen in the bailout if the economy is to return to robust growth. "Athens needs a government that can adopt, and then exceed, the supply-side reforms included in the bailout deal." Syriza is not that party.

Recommended

The after effects of the gas-price shock
Economy

The after effects of the gas-price shock

In the wake of the recent spike in the natural gas price, we can expect slower growth, an industrial recession – and a newly assertive Russia, says Ma…
17 Oct 2021
The charts that matter: bond yields slip while bitcoin tops $60,000
Economy

The charts that matter: bond yields slip while bitcoin tops $60,000

Cryptocurrency bitcoin soared to over $60,000 this week, while government bond yields fell back. Here’s how that has affected the charts that matter m…
16 Oct 2021
Whistleblower allegations – where now for Facebook?
Tech stocks

Whistleblower allegations – where now for Facebook?

Facebook has come in for some fierce criticism after revelations from a former employee. Just how much damage has been done?
16 Oct 2021
When will supply chains sort themselves out and what might that mean for inflation?
Inflation

When will supply chains sort themselves out and what might that mean for inflation?

Right now, congestion in global supply chains is driving inflation higher. At some point, that will sort itself out. So will that mean an end to high …
15 Oct 2021

Most Popular

How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
Why the world’s most important economic data release has unnerved markets
US Economy

Why the world’s most important economic data release has unnerved markets

The US added only 194,000 jobs in September, far shorter than the 500,000 that were expected. John Stepek explains why markets didn't react as they no…
11 Oct 2021