European shares and periphery Eurozone bonds tumbled on Monday after the Greek parliament rejected the government’s presidential candidate, setting the stage for an election that anti-austerity party Syriza could win, Reuters reports. The markets reflected uncertainty about Greece’s future in the Eurozone under a possible Syriza government.
Greece’s Prime Minister Antonis Samaras failed to get enough support for his nominee, Stavros Dimas, and will now call a national election for Jan. 25.
The ruling coalition led by New Democracy is lagging in the polls behind Syriza, whose rise reflects recent polls that show Greeks are frustrated with the EU and even suggest that more Greeks want to return to the drachma than keep the Euro. It raises, once again, the possibility of Greece’s exit from the Eurozone.
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Syriza, formally known as “Coalition of the Radical Left,” became the second largest party in the Greek parliament and the main opposition party in 2012. It came in first in the 2014 European Parliament election, and during the past few months it has become the country’s most popular party.
The success of anti-establishment Syriza has sent “shock-waves across the EU.” Contrary to previous anti-Euro statements, Syriza’s leader Alexis Tsipras says that a Syriza-led government will not abandon the Eurozone immediately. At the same time, he confirms his anti-Euro position.
A Role for a Cryptocurrency?
Eurozone policymakers are scared, because they are wary of opening Pandora’s box, BBC News reports. Their concern is if one weak country leaves the Eurozone, then markets will pick off the next weakest one and so on. But a struggling country would gain competitiveness if it were to exit. It could then weaken its currency to help exports, which would boost the economy while domestic demand slowly recovers.
The recent Scottish independence referendum prompted questions about whether or not an independent Scotland would consider adopting Bitcoin or another cryptocurrency.
Similar questions may surface in case Syriza wins the forthcoming elections in Greece and begins preparing the country’s exit from the Eurozone. After all, what can be more anti-establishment than Bitcoin, the revolutionary currency of crypto-anarchy, developed by-the-people for-the-people?
Do you think Bitcoin could play a role in Greece if the country exits the Eurozone? Comment below!
Images from Syriza and Wikimedia Commons.