Financial News

  • 16 June 2012, 2:26

Greece's Choice: It's The Euro Or The Drachma

Greece's elections are a straightforward choice between sticking with the euro or returning to the drachma, the country's conservative leader has said.

Antonis Samaras was speaking at the final election rally of his New Democracy party in Athens.

He said: "We are going into an election to decide the future of Greece and of our children. The first choice the Greek people must make is: euro versus drachma."

New Democracy, which backs the country's EU/IMF bailout, is running neck-and-neck with anti-bailout leftists going into Sunday's vote.

Mr Samaras' main challenger has promised to rip up the agreements with Greece's international creditors - but stay in the euro.

Alexis Tsipras - the 37-year-old leader of the radical left Syriza coalition, told his own rally in Athens earlier that the recent bank bailout in Spain showed the EU is prepared to soften its approach to troubled countries.

"We will vote on Sunday with our eyes on the south, on Spain," he said.

"Spain negotiated and succeeded in taking financial support without a fiscal consolidation package, despite the lenders' threats and blackmail.

"The memorandum of bankruptcy will belong to the past on Monday," he promised his cheering supporters.

Mr Tsipras has pledged to make the bailout "history" if he completes a historic run that has so far seen his fledgling party more than triple its results from the previous poll in 2009.

"The bailout deal is already in the past. It will be history for good on Monday," he said.

Mr Tsipras says he intends to negotiate a new economic blueprint with Greece's EU peers but if he is turned down "it will mean that they want to exterminate the country, the people, the nation," he told Antenna television.

"I promise you tears and sweat, but we will exit the crisis," Mr Tsipras said.

As his campaign winds up, New Democracy chief Antonis Samaras said he was confident he would be able to put together a coalition government.

"We will stay in the euro. We do not play around with Europe," he said.

Mr Samaras has branded the leftists' electoral programme "comic book economics" although he, too, has said he will negotiate with Greece's creditors to ease the bailout conditions, pointing out that a mood shift in Europe will ease the task.

All the main parties in Sunday's elections are trying to lure austerity-weary voters by promising to renegotiate elements of the agreement signed with the EU, International Monetary Fund and European Central Bank.

The agreement has seen public job cuts and wages and pensions slashed. They were the conditions attached to two financial lifelines to the country, which is mired in debt and has been in recession for five years.

With Spain recently calling for a bank rescue and Italy under renewed pressure, a summit of EU leaders later this month must deal with the crisis increasingly threatening global growth prospects.

Greek Elections: A look At The Main Contenders

:: New Democracy: Conservative/ centre-right

Leader: Antonis Samaras, 61

Eurozone: The largest pro-bailout party which is committed to staying in the euro; Will negotiate with Greece's creditors to ease the bailout conditions and try to boost economic growth; It was part of the coalition government in power before the May 6 elections so shares responsibility for the current austerity cuts.

Domestic: Traditionally seen as a pro-European and pro-business party; Has pledged to lower taxes and raise pensions.

Final pre-election poll: 25.5%

:: Pasok: Socialists/ centre-left

Leader: Evangelos Venizelos, 55

Eurozone: Pro-bailout party which was in power until the May 6 elections so shares responsibility for big cuts to social spending; Now insists unpopular austerity measures can be reversed and unfavourable conditions of the bailout agreement be revised.

Domestic: Has promised no civil service lay-offs; Pro-privatisation to make its economy more competitive.

Final pre-election poll: 13.5%

:: Syriza: Radical left

Leader: Alexis Tsipras, 37

Eurozone: Rejects the terms of Greece's international bailout and wants to negotiate a new economic blueprint with the EU and IMF (casting doubt over its future membership of the euro).

Domestic: Opposes austerity; intends to scrap cost-cutting labour reforms, raise the minimum wage and freeze state assets; Has promised to nationalise banks and stop privatisations; Wants to increase taxes for higher earners.

Final pre-election poll: 31.5%

:: Golden Dawn: Extreme right

Leader: Nikolaos Michaloliakos, 55

Eurozone: Anti bailout, anti-EU, ultra nationalist party.

Domestic: Anti-immigration; its logo is similar to the Nazi swastika.

Final pre-election poll: 4.5%

:: Others Democratic Left (says Greece could fulfil its bailout commitment without the harshest austerity measures): Independent Greeks (anti-bailout but wants to stay in the euro); KKE/ Communist Party (anti-bailout, anti-austerity, wants Greece to leave the euro, EU and other international institutions); Laos/ The People's Orthodox Rally (rejects bailout deal in current form but is 'open to co-operation')

Greece's Economy: GDP Growth Over The Last Decade

what do you think?

6 comments

Jack Townshend

8:15am on 15/6/2012

Sounds a bit like a left wing Hitler and just as mad. I can't believe how any sane person could vote for such a loony. Says a lot about The Greece of today,none of it good.

Score: 9
1 reply

jimmyjedi1979

7:01pm on 15/6/2012

If you ever have the misfortune of eating from a dust bin - don't dare complain! Just get on with it.

Score: 2

MichaelStinton

8:33am on 15/6/2012

Isn't this what Hitler did? This man isn't a democrat more a demagogue.

Score: 6

Ben Ralph

9:17am on 15/6/2012

The reason Spain isn't under the same pressure as Greece is because Spain is much bigger plus the Spaniards are committed to giving bailout money to...... Greece! Unfortunately Spain has to borrow this bailout money at a higher interest rate than Greece has to pay back. Euro economics!

Score: 6
2 replies

gengisken1227

11:11am on 15/6/2012

Yeah, it's a great system isn't it. Mind you, IMO if it brings down the whole rotten EUSSR, then good luck Tsipras. Sunday should be interesting

Score: 5

Lorgar Aurelian

10:32pm on 22/6/2012

EUSSR, good one!

Ronnie Vincent

10:56am on 15/6/2012

Look at this way, if you have one guy saying 'no we must have these measures, we must have austerity, we must have unemployment, we must do what the rest of europe want us to do' and another saying, 'we don't have to do this, look at Spain, we will tear up the agreement, we'll put people in work, we will spend money to grow' whether this is true or not who would you vote for. This is how the radicals rise. People of Britain WE SHOULD GET OUT NOW BEFORE THEY DRAG US INTO THE S**T WITH THEM ALL. HOW LONG DO YOU THINK THE PEOPLE OF GERMANY WILL STAND FOR PAYING FOR THE REST OF THEM 8

Score: 8

David Wragg

2:32pm on 15/6/2012

Fool! He can't have it both ways. Greece either accept the ECB rules or leaves the Euro. Anyway, let's keep our money to ourselves and not bail out such a feckless 3rd world nation, for that is what it really is.

Score: 7
2 replies

Gordon Berry

3:05pm on 15/6/2012

You Are right. Greece must withdraw from the Euro before anymore damage comes about. Politicians have made a mess out of the Euro which was predictable at the outset

Score: 6

David Wragg

5:53pm on 15/6/2012

It was indeed, Gordon. Such divergent economies could never produce a sustainablke one size fits all currency.

Score: 5

Nathan Pegg

9:55pm on 22/6/2012

So they'll tell europe they have no intention of paying back the billions they're currently living on, but they'd like to stay in Europe. Yeah, I bet they would. While Europe is sucker enough to keep propping them up. All the positive campaigning is rubbish, their country is a mess and they'll need to spend a lot of hard years balancing their books. They can't start that by defaulting on their debts, not without the lender's approval. Time to grow up and take responsibility. They've a proud history they need to man up and be worthy of. Like another small nation on the edge of Europe I could mention.

Score: 2
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