The ECB Faces some Tough Decisions now that Syriza has Won the Greek Election

syrizaRecently the European Central Bank (ECB) took an aggressive step to curtail the deflationary trend of the Euro. The ECB decided to initiate what they termed a ‘quantitative easing’ plan; the plan involved funding in excess over 1 trillion Euros.

With hope of that working, the ECB can know turn their attention back to Greece and the worry about the country’s just finished elections. As expected, the Syriza party wona majority of the vote and Alexis Tsipra was elected Greece’s new Prime minister. What worries the ECB is that the Syriza party ran based on an anti-austerity platform.

One of Syriza’s campaign promises was to aggressively lobby Eurozone and the ECB to reevaluate the amount of their debt holdings to Greece. The new government then will look to increase spending in an attempt to promote job growth.
Why is the ECB worried about this? There is a big fear that if Tsipra and the Syriza party get their way, then it could be enough to offset any gains made through the quantitative easing plan and send the European economies spiraling downward again. The results of the Greek election have definitely generated a feeling of uncertainty in global markets and have given rise to a lot more volatility in the markets at the same time.

The positive part of the election results are that Syriza has stated it no longer wants to leave the European Union; there was a big fear about this three years ago when Greece’s struggling economy severely faltered. Since that time and their subsequent bailout, under the terms of the agreement, Greece has been subject by periodic inspections by the International Monetary Fund (IMF), the European Union commission and has also been subjected to ECB reforms brought on by the urging of Germany.

Despite their new ambitions, it will be hard for Greece’s newly elected government to satisfy its campaign promises and at the same time ease tensions with the IMF and Europe.

John Miller
Follow us
Latest posts by John Miller (see all)
 
 
The Surprising Economic Impact of Facebook
 
 
Ikea Launches a new Line of ‘Smart Furniture’

John Miller

John Miller is the main author of content here at 7 Binary Options. He’s also the brand’s lead investment consultant. He’s been working for 7 Binary Options since April 2014 and brings a wealth of knowledge and experience to his role. He’s played a crucial part in developing the site and helping it grow. In his role as writer and consultant, John’s keen to help others get ahead in the ever-changing world of binary options and forex trading. He’s always happy to advise others, whether it’s complete beginners learning the ropes or more experienced traders looking for some hints and tips. John certainly knows what he’s talking about. He graduated from California State University in 2008 with a Master’s Degree in Investments and Securities. Since entering the world of work, he’s continued to put his degree to use. He’s spent over a decade working in the investment banking sector and thanks to his foresight, skills and education, he’s in a prime position to offer help to others looking to start investing.