Back
29 Dec 2014
Early elections averted in Sweden, but not in Greece – TDS
FXStreet (Barcelona) - Richard Kelly, Head of Global Strategy at TD Securities comments on today’s events in Sweden and Greece, further noting that the proposed elections in Greece will help fuel additional volatility in the euro and selloff in Greek debt.
Key Quotes
“A surprise announcement in Sweden over the weekend between the government and centre-right opposition has averted early elections scheduled for March 22nd.”
“The ruling Green and Social Democrats have agreed with the four party centre-right Alliance that those in opposition will not block the government’s budget, avoiding triggering automatic early elections and effectively limiting the veto power and political instability from the rising strength of the nationalist Sweden Democrats.”
“Greece failed to avoid early elections after the government’s candidate for President received 168 votes in the third and final round of voting, shy of the 180 needed.”
“The Greek Prime Minister has now said he will ask the President to dissolve Parliament on Tuesday and will call early elections for January 25th.”
“Though the current government will try to campaign on a crisis message, we would say it is still premature to suggest the likely Syriza-led government will trigger a new crisis, as the debate on renegotiating the unsustainable level of Greek debt had to begin. But brinksmanship and campaigning is likely to make for increased volatility, with key questions for continued ECB liquidity support.”
“Overall, new elections in Greece will help to fuel additional volatility in the euro and selloff in Greek debt, but could ultimately prove quite cathartic for the long-term process of getting Greek government debt back to a sustainable setting.”
Key Quotes
“A surprise announcement in Sweden over the weekend between the government and centre-right opposition has averted early elections scheduled for March 22nd.”
“The ruling Green and Social Democrats have agreed with the four party centre-right Alliance that those in opposition will not block the government’s budget, avoiding triggering automatic early elections and effectively limiting the veto power and political instability from the rising strength of the nationalist Sweden Democrats.”
“Greece failed to avoid early elections after the government’s candidate for President received 168 votes in the third and final round of voting, shy of the 180 needed.”
“The Greek Prime Minister has now said he will ask the President to dissolve Parliament on Tuesday and will call early elections for January 25th.”
“Though the current government will try to campaign on a crisis message, we would say it is still premature to suggest the likely Syriza-led government will trigger a new crisis, as the debate on renegotiating the unsustainable level of Greek debt had to begin. But brinksmanship and campaigning is likely to make for increased volatility, with key questions for continued ECB liquidity support.”
“Overall, new elections in Greece will help to fuel additional volatility in the euro and selloff in Greek debt, but could ultimately prove quite cathartic for the long-term process of getting Greek government debt back to a sustainable setting.”