Alexis Tsipras has hailed a “victory of the people” after his left-wing Syriza party won Greece’s fifth election in six years. Mr. Tsipras said his decision to call an early election was vindicated and that he had been given a clear mandate.
Since Greece produces very little in terms of manufacturing, they rely on imports to exist. Manufacturing is down 40% and imports are down 33%. The Greek economy was growing in the second half of last year. Businesses began hedging their bets for expansion when ‘capital control’ started in July. Now, investments have dried up completely. Now the Tsipras government is poised to take even more of their profits.
Many businesses can’t pay their suppliers without getting special permission for a loan from the central bank. How’s that for instilling business confidence? Unemployment is over 25% and youth unemployment is over 50%. And Greece’s economy is tanking.
Rejecting the EU, IMF, the ECB, Greece seems to have given Tsipras a mandate to suicide.