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IPFS News Link • European Union
In the five sessions through Tuesday, the Greek stock market has rallied 25%. Equity traders seems to anticipate the election outcome. A new government is not yet in place, but many are still confident it will be announced in the very near-term. At the same time, European officials seem to be much more supportive then they were prior to the vote. They seem more willing to modify the Greece's program than if Syriza won, underscoring our sense that the bellicose rhetoric was simply the start of negotiations.
At the same time, it raises issues of the real meaning of sovereignty, that officials seem to determined to preserve. Recall that Italy's Berlusconi was pushed out not so much by the opposition in Italy as by European officials including Merkel.
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