Loading ...Syriza Forms Coalition Government With Anti-Bailout Independent Greeks: What Happens Next
Tyler Durden’s pictureSubmitted by Tyler Durden on 01/26/2015 06:49 -0500
There was some excitement in the capital markets overnight, when what was initially seen as an outright victory for Syriza, giving it an absolute, 151-seat majority in parliament – a fear that briefly pushed the EURUSD under 1.11 when the Euro PPT stepped in – ended up being a placing just shy of a majority with 149 seats. However, that same excitement fizzled several hours ago when the “radical left” party agreed to form a government with the “rightwing” group of the Independent Greeks in the aftermath of Syriza’s historic win which harnessed the public backlash against years of belt-tightening, job losses and hardship.
As the FT reports, Panos Kammenos, leader of the fiercely anti-bailout Independent Greeks, said as he left Syriza’s headquarters after a meeting with Alexis Tsipras, the prime minister-elect: “The country has a government. Independent Greeks will give a vote of confidence to Alexis Tsipras.” The deal would give Syriza a comfortable working majority in parliament but Mr Tsipras has yet to confirm anything as he continued coalition negotiations with other parties.
So in a parliament in which the nationalist Golden Dawn placed third, the new leadership will be comprised of a far left and a far right group, both united by the hatred of European bailouts and the stifling Greek economy, both of which they are eager to blame on Germany and the Troika.