Syriza must wrest some new deal from Greece's lenders

Subject

Syriza's first days in office.

Significance

The Syriza party won the election on the back of voters' rejection of economic policies imposed from abroad. The divergence between the interests of the Greek ruling elite and the general population determined the outcome. It is still an open question whether over the short-to-medium term, Greece's creditors will force Syriza leader Alexis Tsipras to temper his pre-election promises. Finance Minister Yanis Varoufakis's statements during his visit to London seem to indicate moderation.

Impacts

• A closer political alliance with Russia might be used as bargaining chip in the medium term.
• Syriza's win will embolden leftist movements around Europe.
• In addition to direct losses incurred mostly by EU institutional investors, 'Grexit' would dampen euro-area growth rates.
• Perceived reversibility of EU membership would increase investors' risk estimations for other debt-stricken member states.