Sunday, July 5, 2015

The expert: ‘No’ vote strengthens the government “- Aftonbladet

Now wait negotiations between the lenders and the strengthening of Greek government, believes political scientist Sverker Gustavsson after the Greek people voted no on Sunday.

Meanwhile, says economics expert Andreas Hatzigeorgiou to state Europe is now even more uncertain.

A few hours before the final results proclaimed pointing mostly on the no side won a landslide victory in the Greek referendum. Greek Finance Minister Yanis Varoufakis declared victory just before 22:00.

Sverker Gustavsson, professor emeritus of political science at Uppsala University, is surprised that no side had such a clear majority.

– I had anticipated that it would be much more even, he says.

The convincing support that people showed the government by voting no is something that lenders IMF, the ECB and the EU must relate to, says Sverker Gustavsson.

Russia and China keeps track

– I think that the EU is regarded by China, the US and Russia. The EU has to act from principle to rescue European construction. One should not fixate on the technology and think that you have to negotiate one or the other condition. The important thing is that people have said from here, and then you have to start negotiating on the basis of the premise. It is clearly difficult, says Sverker Gustavsson.

The question that many ask is – what happens now?

It is very uncertain, says Andreas Hatzigeorgiou is chief economist at the Stockholm Chamber of Commerce and expert on international economics.

– Greece sail further out on uncharted waters. No-voice creates greater uncertainty about Greece’s role in Europe. They say no to lenders’ demands and reforms means that there is a rift between Greece and Europe that is difficult to overcome, says Andreas Hatzigeorgiou.

He does not believe that the election results will provide Tsiprasregeringen more strength in negotiations with lenders.



Greek government can be strengthened by the result

– Syriza interprets this to mean that the have a stronger mandate to say no to the lenders, but it does not. They have fought for five months with the euro countries and the IMF, so it’s nothing new for them. What complicates the matter is that they proclaimed a choice instead of continuing to negotiate in a constructive spirit, says Andreas Hatzigeorgiou.

Sverker Gustavsson still believe that Prime Minister Alexis Tsipras is strengthened by the election results.

– There will be negotiations to solve the problem of a strong Greek government. Merkel go to Paris tomorrow for talks with Hollande and they must note that Tsipras has a support that they probably had not counted on, he said.



“Increased uncertainty in Europe”

The Greek people clear ‘no’ will create uncertainty in the European economy, believes Andreas Hatzigeorgiou.

– It increases the uncertainty and risks associated with Greece. Risks are a poison for growth and investment. Europe has recovered in recent months and there is a risk that the Greek crisis dampen the recovery, he said.

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