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Could the Eurozone soon see a wave of anti-austerity rebellion? (City A.M.)

    CPS Head of Economic Research Adam Memon participated in a debate feature in City A.M. on "Could the Eurozone soon see a wave of anti-austerity rebellion?", Thursday 11 December 2014. 

    To read the full debate, visit the City A.M. website here

    "In Greece, a disastrous combination of sheer incompetence and an inability to grasp the severity of the Eurozone crisis has meant that Syriza, a party of the hard-Left, could soon form a new government. Syriza’s economic programme, which calls for a new spending splurge, is incompatible with the Eurozone’s prescribed austerity.

    However, if it gains a democratic mandate, the overriding concern of the European elite will be to find a way to accommodate a Syriza-led Greek government. In the minds of the politicians and central bankers deciding the Eurozone’s future, there is nothing more important than saving the euro and holding the bloc together.

    If easing off on austerity is the price, it is a price they will pay.

    This would give the green light to other governments, which are under severe pressure to deviate from their programmes of fiscal consolidation. It would also put wind in the sails of anti-austerity parties, like Podemos in Spain."

    To read the full debate, visit the City A.M. website here

    Date added: Thursday 11th December 2014