Sunday, January 25, 2015

A Possibility: Greece on the Edge of Maturity By Leaving the EU, if the Left Wing Will Win the Coming Election (04.01.2015).

As i predicted nearly three weeks ago.

As it appears, the radical left Syriza party (Anti-Austerity) is going to win the election. This development is going to create a huge dilemma for the EU. One  might wonder how. This is the story. The new left political system in Greece along with the majority of Greek people are really fed up with all austerity measures imposed by the EU, IMF and the WB in the last couple of years. As such, the new left government in Greece will try to arrange a new deal with the EU; simply a deal without those austerity measures.  In this respect, the EU has only two options.

1- The EU agrees with Greece's proposal. (Which i doubt about it). In this respect, Greece will remain within the EU.

2- The EU does not agree with Greece's proposal. In this respect, Greece will undoubtedly declare default and leave the European Union. Should this happen, a new wave of economic crisis will spread the EU and consequently the rest of the world to some degree. Following this event, Greece might ask BRICS group for help. In this respect, the New Development Bank (BRICS Development Bank) will suppport Greece financially, instead of the WB or IMF. This will be an important step for BRICS group and in addition, will crush the supremacy of the WB and IMF in the international arena.

Such a development would be interesting from different angles.

M. Sirani                                    25.01.2015