By Brian Kesten
The tumult in Greece continues, as Alexis Tsipras’s
left-wing Syriza party won
the plurality of votes Sunday night. Just last month, Tsipras resigned as Prime
Minister and called
new elections to determine Greece’s political direction in the wake of
Tsipras’s 86 billion euro bailout. The election will allow Syriza to renew a
coalition with another anti-austerity group, the right-wing Independent Greeks party.
Meanwhile, the agreed upon reforms were not greeted with
smooth implementation. New banking rules risk wiping
out corporate deposits if Greek banks are otherwise unable to meet EU bank
capitalization rules. Although EU negotiators sought to preserve these
deposits, the reality of implementing bank reforms clashes with EU bank capital
rules and could result in further destabilization of the Greek financial
system.
0 comments:
Post a Comment