Devastating loss for ruling left-wing Syriza party in European election opens door to New Democracy party. Tsipras’s last-minute handouts may have backfired. Focus turns to the feasibility of Mitsotakis’s plans to lower taxes.
Nobel laureate economist, Paul Krugman, says nominal debt relief for Greece and an end to austerity policies is essential; but he admits it is practically impossible accurately to predict the risks of a return to a national currency.
Greece clutching at symbols to show she has earned concessions; but the Greek economy remains at a near-stand-still as liquidity of the banking sector is at a critical point.
The Eurogroup meeting this afternoon will decide whether the eurozone’s patient will remain under mechanical support or be left to his own devices.
Tsipras under pressure to deliver while creditors are banging at the door – adopting a pragmatic approach will not be easy, as he was elected on a strongly anti-austerity agenda.
Sooner rather than later Tsipras will have to make the crucial decision between compromise and conflict with Greece’s creditors and partners.
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