Euro hits 11-year low after Syriza victory in Greece

26 Ιαν 2015

The euro has fallen sharply against the dollar after the anti-austerity Syriza party won the Greek general election.
The euro briefly fell as low as $1.1088 - the lowest level against the dollar in more than 11 years. Syriza leader Alexis Tsipras has pledged to renegotiate the terms of Greece's €240bn bailout and reverse many of the austerity cuts.
But he said his government wanted a negotiation, not confrontation, with its international lenders. "The new Greek government will be ready to co-operate and negotiate for the first time with our peers a just, mutually beneficial and viable solution," Mr Tsipras said.
The troika of lenders that bailed out Greece - the European Union, European Central Bank, and International Monetary Fund - imposed big budgetary cuts and restructuring in return for the money.
But Mr Tsipras said: "The troika for Greece is the thing of the past." Greece's current bailout programme ends in February, and economists say a short term deal will be negotiated, but difficult talks lie ahead. Germany has indicated that it is not prepared to renegotiate the bailout terms, raising the prospect that Greece could end up leaving the eurozone.
"There is a danger of a prolonged stand-off with the troika as Syriza attempts to negotiate some form of official debt restructuring while not reneging on its promises to voters to cut taxes, raise government spending and increase the minimum wage," said Jonathan Loynes, chief European economist at Capital Economics.
(Πηγή: www.bbc.com)

Share on:
 
Copyright © Onus News - All Rights Reserved
Developed by Onus News