Every week, The WorldPost asks an expert to shed light on a topic driving headlines around the world. Today, we speak with economist Edward Hadas about the significance of Syriza’s victory for the Greek economy and the eurozone.
The left-wing party Syriza won national elections in Greece last Sunday with a program promising to roll back the stringent austerity measures imposed on the country in the wake of the financial crisis.
Syriza wants to renegotiate the terms of Greece’s bailout agreements with its creditors — the troika made up of the European Commission, the European Central Bank and the International Monetary Fund. Troika leaders have insisted that Greece must fulfill its commitments, raising the prospect of a confrontation that could destabilize the eurozone, 19 of the 28 members of the European Union using the euro as their currency.
In his first week in power, Greece’s new Prime Minister Alexis Tsipras signaled that he would not relinquish his anti-austerity campaign pledges. He moved quickly to block the privatization of state assets and promised to rehire public workers, causing the Greek stock market to tumble. “We are coming in to radically change the way that policies and administration are conducted in this country,” Tsipras vowed at his first cabinet meeting.
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These are longstanding issues. Greece faced a civil war after World War II and was later ruled by military regimes. Some social divisions have not been resolved. Economies need strong civil institutions and these have not taken root in Greece.
It is promising that Syriza is made up of political outsiders, and is willing to consider more unorthodox policies. They appear committed to breaking the cycle of those who have governed Greece so badly in the past.
This interview has been edited and condensed for clarity.
