The situation in Greece continues to dominate the markets and news flow. The recent election of the anti-austerity Syriza party has led to uncertainty as to whether Greece will leave the single currency. Alexis Tsipras the new PM, is locked in crucial talks to negotiate funds to ensure that the country doesn’t default on its commitments.
With only two weeks of leadership, the moves by Tsipras are radical, and could have catastrophic repercussions. An exit from the Eurozone would leave the nation isolated and defaulting on its obligations. The government would probably have to enact currency restrictions as the nation moves from Euros to a new domestic currency. Businesses would struggle to pay creditors for stock, in the short term there would likely be further pain for the Greek people.
The latest news is that both Russia and China have offered to assist the beleaguered nation, though Greece hasn’t requested it. The current sanctions and political stalemate with Russia, this latest move is only likely to further complicate the matter.
The radical leftist party is threatening the overall stability of the single currency, with the Euro weakening against the USD and GBP.