Greek vote defies austerity

9^th May 2012

The editorial unit

The editorial unit

9 May 2012

The chances of a Greek repeat election in June are growing by the moment with the collapse of the two-party system and the vote of rage prompting a withdrawal of the 5.2 billion euro salvage package due tomorrow. The development comes as an austerity rebellion broils with newly elected left-wing leaders in Greece and France teaming up against Merkel and Cameron’s poverty-inducing policies.

While in Greece the mainly Communist Syriza try to form a government coalition before Thursday, Francois Hollande celebrated with thousands at the revolutionary Place de la Bastille. He announced that the fight had begun against further austerity measures and called for a new wave of growth policies.

The radical left’s Alex Tsipras, who came a close second in the Greek polls, is planning to meet with the French president, who has already pledged his support for Greece in its struggle against crippling financial reforms that have left thousands unemployed and homeless. Tsipras has stated his resolve to reject Merkel’s harsh rescue package, which could in the end prompt an exit from the euro. The move comes as Antonis Samaras, the centre-right New Democracy leader, struggled to form a government with a centre he has stopped talking to in an effort to stave off what has become known as the “Grexit”.

Spiralling unemployment and massive demonstrations have become the order of the day in Spain, Portugal, Italy and Ireland, where analysts have claimed austerity just isn’t working. In Spain, Rajoy is due to announce its third biggest bank, Bankia and will have to be rescued this week after markets hit new record lows across the world and the euro plummeted in value against the dollar.

The response across the pond was swift this morning, with the Dow Jones also falling as Syriza called for Greek banks to be nationalised or face even more violence as frustration boils over onto the streets. However, the British reaction to the crisis has been characterised by apathy. Many are ignorant of how Greece’s economic output has been savaged by EU restructuring. Over one million olive trees have been left redundant and citrus fruits and tomatoes have been left unpicked in favour of the ecologically unsustainable cotton trade – which, as commentators have reminded, will only last a few years before water runs out.

The editorial unit