Opinion
Why Early Elections Are Bad for Greece
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The elections add significant uncertainty to an economy ravaged by political and economic uncertainty.
By Nicholas Economides
Only eight months after his own election, the Greek prime minister has called for a new general election in September. Why the rush?
There are three reasons why Alexis Tsipras is calling early elections. First, his coalition power in the Parliament has crumbled with 45 of its 162 members voting against the laws of the agreement with the European Union. These laws passed only because of the support of opposition center-right and center-left parties. Second, to maximize his support, the Greek prime minister wants elections quickly, before the full implementation and new heavy taxation of the EU agreement is felt by the public. Third, his rebel members of parliament will have much less time to organize a party to run in opposition to the prime minister. As good as elections are for Tsipras, they are bad for Greece. Here's why.
The elections add significant uncertainty to an economy ravaged by political and economic uncertainty. Tsipras' administration has been a disaster for the economy. Six months of fruitless negotiations were followed by closed banks, capital controls and very tight cash withdrawal limits. Consumption, as well as imports and exports (that mostly depend on imported raw materials), have fallen dramatically.
Read full article as published by CNBC
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Nicholas Economides is a Professor of Economics.
There are three reasons why Alexis Tsipras is calling early elections. First, his coalition power in the Parliament has crumbled with 45 of its 162 members voting against the laws of the agreement with the European Union. These laws passed only because of the support of opposition center-right and center-left parties. Second, to maximize his support, the Greek prime minister wants elections quickly, before the full implementation and new heavy taxation of the EU agreement is felt by the public. Third, his rebel members of parliament will have much less time to organize a party to run in opposition to the prime minister. As good as elections are for Tsipras, they are bad for Greece. Here's why.
The elections add significant uncertainty to an economy ravaged by political and economic uncertainty. Tsipras' administration has been a disaster for the economy. Six months of fruitless negotiations were followed by closed banks, capital controls and very tight cash withdrawal limits. Consumption, as well as imports and exports (that mostly depend on imported raw materials), have fallen dramatically.
Read full article as published by CNBC
___
Nicholas Economides is a Professor of Economics.