Greece’s New Democracy Fights Plans to Scrap the Bailout Plan

The radical leftwing Syriza party has recently announced plans to end the newest bailout agreement. Greece’s center-right leader issued a warning on Wednesday that Syriza’s plans could catalyze and a collapse of Greece’s internal systems and a government default.

At a meeting of the New Democracy party, Antonis Samaras told meeting members about his proposals for the future. According to Samaras, the solution to Greece’s problems lies with amending the terms of the government’s bailout. Samaras wants to work with the International Monetary Fund and the European Union to keep Greece within the EU. His party seeks to create a center-right collaboration that fights to keep Greece on course within the European Union.

The leader of Syriza, Alexis Tsipras, presented a five-point plan on Monday. This shocking proposal was formed around Tsipras’s goal of abandoning the bailout plan. The five points include proposals to nationalize banks, stop repayment of government debt, reverse fiscal reform and start more proportional representations in the government.

A Coalition Government?

In the current election, New Democracy finished first with Syriza just behind it. Although New Democracy has the most representatives of any party, it still does not have enough to hold majority power. As a result, Tsipras and Samaras are scheduled to meet on Wednesday to discuss the possibility of forming a coalition government.

New Democracy is attempting to make connections with the third place party, Panhellenic Socialist Movement (Pasok). Pasok is currently the only other party in the government that supports the reform program. The current leader of Pasok is Evangelos Venizelos. Part of the recent rise of Syriza to second-largest party was due to the votes lost by Pasok. In retribution for the austerity measures of recent years, Pasok lost votes to Syriza. As New Democracy and Pasok try to cement a new partnership, the coalition will be increasingly important to the European Union at large.

If neither Tsipras nor Venizelos can form a coalition, new elections will be held starting next month. Analysts are increasing betting on the inability of Greece to form a coalition within its government. For Greece, there are still few alternatives to the government bailout and austerity plan. If Greece wants to remain within the European Union, it will have to accept the austerity program.

After the elections, Greek shares are down again on Wednesday. The stock market in Athens is trading at its lowest levels in the last 20 years.