Greek politics causes Eurozone concerns

Once again the political situation and a possible de coupling of Greece from the Eurozone, threatens to destabilise the relative calmness the area has experienced for many months. Greece has had to implement a wide reaching and hugely unpopular austerity programme, in order to receive funds from the IMF and other sources, to ease its massive debt problems and any political party that promises to release them from the terms of the bailout, will be listened to.

The situation this time has come about due to the unpopularity of the current government, led by Prime Minister Antonis Samaras and a mid term election has been called for late January. One of the opposition parties, Syriza, has considerable support in Greece on the back of plans to reverse the austerity programme and not adhere to the terms of the complex structured bailout , without which Greece would effectively have gone broke.

The tems of the bailout are not specific to any particular Government, so whoever wins the election would be be tied to the original agreement but that is looking unlikely if Syriza come to power as the polls suggest they might and a default situation occurs.