Why is the new Syriza (far left) government in Greece a concern?

  • New PM is anti-austerity and wants to renegotiate Greece's debts.
  • Ending austerity would cause ballooning budget deficit, Greece would have to leave the EU (as members need to adhere to certain budget rules), and could face deep economic crisis (like the situation Venezuela is in right now).
  • Debt renegotiation effectively means Greece reneges on past commitments to creditors, so would effectively lose future access to international capital (situation Argentina is in right now).

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