Syriza Ousted; New Democracy Claims Majority in Greek Parliament

In the midst of a catastrophic financial crisis, the Greek people have officially discharged left leadership in favor of a moderate government. Greece’s center-right party, New Democracy, obtained an absolute majority within parliament. Winning 158 of the 300 available seats, Syriza was formally removed from power. Syriza, Greece’s radical left party, had maintained a majority since the previous elections in September 2015. Syriza’s appointment followed the authorization of a bailout memorandum in January of 2015, which their party leader (and soon-to-be prime minister) Alexis Tsipras had approved in spite of an overwhelming national opposition. Given the terms of the bailout, namely the staunch proposals of government austerity, the Greek electorate saw fit to appoint a more left-leaning government. However, the election of New Democracy in July points to a significant shift in Greek thought.

Syriza failed to follow through with their platform, which was decidedly critical of the European Union, therefore turning their backs on their voters. Syriza’s function as a coalition of various political philosophies (those of Trotskyists, Social Democrats, Maoists, and Greens, to name a few) was less stable than the more cohesive New Democracy, and the former dominant left party PASOK, the Panhellenic Socialist Movement.  Syriza’s failure to win a second majority in Greece’s parliament, though certainly indicative of frustration and distrust, is an increasingly prevalent trend for the European left. Loss of faith and a resurgence of conservative sentiment is ushering in a new era of political unrest throughout the European Union of which present day Greece is merely a symptom.

The Black Sheep of Europe 

When considering Greek politics, one must remember it is a newly modernized state. As recently as the 1970’s, Greece upheld a military-fascist political doctrine. PASOK was the first party to expand social welfare policies, including reforms on education and limits on presidential power, but even then, argued for withdrawal from NATO and the European Union.  Greece has historically maintained a thorny relationship with the EU. Greece is a comparatively small and impoverished state, certainly the greatest victim of the Eurozone crisis, and is treated mainly as a dead colony of the European Union. A former member of Syriza, Stathis Kouvelakis described  Greece as having an economy and finance divisions that are treated primarily as a protectorate. Greece’s national distrust of the E.U. contributed to Syriza’s rise in power. Tsipras’ negotiation with the E.U. was the ultimate betrayal for all who voted Syriza into office.

Though Greece is eager to pursue self-determination and distance from the E.U., there is an enduring divergence from fascism and a growing interest in stabilization. There is a law within the Greek electoral system stating that any party earning less than 3% of the vote is automatically disqualified. For the first time since 2012, the Golden Dawn, a far-right party, failed to reach that 3% minimum, losing their 18 seats to New Democracy. Greece’s electorate is seeking a more moderate government. In fact, the election of a center-right party is more likely to ensure there isn’t an election of the reactionary right, since the national focus is avoiding political disorder. New Democracy offers Greece the opportunity to adopt similar neoliberal policies that have been popularized throughout Europe, which has a legitimate chance of rebuilding the economy post-Syriza. For the Greek people, anything other than Syriza’s austerity and surrender to the E.U. would be preferable.

A Desperate Nation

Syriza’s failure can also be attributed to the fact that New Democracy’s financial plan gave Greek voters a better deal on the short term. The formerly centrist New Democracy adopted a more conservative stance to appeal to the right-leaning constituency. There had been a decline in conservative sentiment within Greek politics since the 70’s, more recently to counterbalance austerity measures. New Democracy’s adoption of right-wing policies allowed for them to have wider appeal, acting as a catch-all party for voters who’d otherwise opt for minor right-leaning parties. New Democracy attracted a broader pool of voters, drawing a 58% turnout rate for the vote compared to 44% in the September 2015 elections. New Democracy’s tax relief plan was extensive as well, promising a cut on income tax from 22% to 9%, whereas Syriza proposed it go no lower than 20%. With employment down 9% since 2015 to a much milder 18.5%. Syriza campaigned heavily on jobs, promising to create 500,000 if reelected, but the Greeks needed more than jobs or marginal tax plans. They needed results that Syriza couldn’t provide, evidently putting Greece’s separation from the Eurozone on hold, the one move that could be the ticket to rebuilding their economy.

Greece’s economy is shrinking, and with austerity measures further inhibiting growth, their national debt is likely going nowhere. German Finance Minister Wolfgang Schauble has advocated for Greece’s departure from the Eurozone, stating “debt relief is not possible” for participating nations. Compared to Britain, which has been famously entertaining their own exit from the E.U., Greece would face much more substantive economic destruction. Adopting a new currency would lead to drastic inflation, consequently devastating an already desperate population even more.

A Way Out 

In spite of the risks, “Grexit” could be Greece’s last chance to gain their own footing in the economic arena, but it is a policy based strictly within Greek’s left-leaning parties. The election of New Democracy points to a shift in priorities among the Greek electorate. Naturally, they don’t want to put themselves in a precarious state. With a diminishing GDP (a monstrous 56% drop since 2008) and a steadily high unemployment rate, Syriza’s high taxes with no investment in public services only accelerated their descent. PASOK, which gained a mere 86 seats, has lost significant support in the past ten years, after accruing massive debts through the mishandling of resources and clientelism. The MeRA25 party, newly founded by former Syriza member and finance Minister Yanis Varoufakis, trailed far behind with just under 3.5% of the vote. Low turnout rates alone point to the demoralization and delegitimization of the left. Greece’s debts are already up to 180% of their GDP and will only increase. The fact of the matter is any implementation of policy to restructure the debt of the public and the nation under any party, be it left or right, could cause instability. Greece is currently under the same austerity it’s been subjected to for years now with no viable progress.

The Future of Greece’s Economy 

         The economic crisis has understandably decimated the Greek people both socially and financially as well. Their general security, job prospects, and incomes have all declined alongside the economy. Jobs are scarce, especially for college graduates who unfortunately must choose between entering a workforce with no upward mobility or emigrating for sustainable work. The Organisation for Economic Co-operation and Development reports that Greece’s overall youth unemployment rate is just shy of 40%. Among all ages, 1 in 5 Greeks with college degrees are unemployed.

But either way, the fate of a Greek worker is bleak. The conditions are nightmarish—long hours with shrinking pay, few choices or opportunities. Many young Greeks are growing up with the idea that they have to leave. In fact, many already have. According to Oxford Analytica, 20,000 people between the ages of 25 and 29 have emigrated out of Greece. On top of that, 14,000 between 20 and 24 have also left, a significant increase directly correlated to the first bailout in 2010. With economic growth holding steady at around 2%, it makes sense that Greece’s youth would seek opportunities elsewhere, but where does that leave the country they left behind? Now an aging country living off of pensions, the lack of young people entering the workforce is adding stress to an already difficult state of the economy. Perhaps New Democracy’s tax plan will ease Greek citizens’ financial struggles, phasing them out of the 85% tax rate Syriza had imposed.

Greece has turned to a gig economy model for many of the young people seeking work. It’s comparable to the newfound dependency in America on companies like Uber and Grub Hub which offer unskilled positions largely on the basis of demand. Greek people have turned to working odd jobs, meaning their monthly income is unstable, and their morale devastatingly low. In an interview with the BBC, a 28-year-old woman named Tonia with a degree in economics and business described her situation, having been unemployed for 3 years and relying on her parents, “I quit my friends, my interests. I stay here in this bed, in this room, just alone with no sound, nothing.” As of 2010, her circumstance is common. Upon her visit to Greece, Dunja Mijatović, the Council of Europe’s commissioner for human rights, found that depression and mental health issues rose sharply following the financial crash. Between 2010 and 2015, suicide rates had gone up 40%, doubling among those under the age of 22.

Evidently, Greece is at a point where it has nothing left to lose. After nearly half a decade buried in disastrous debt, perhaps new leadership can reconfigure the economy (or at least the morale) of a people in crisis. 

Featured Image Source: (Alkis Konstantinidis/Reuters)