1 graph to understand the Greek vote

Tomorrow, January the 25th, in Greece, Syriza will probably win general elections with a wide margin. Syriza wants to put in place an anti-austerity policy which would be in opposition to the Troika’s recommendations.
The chart below allows an easy understanding of this vote and why Greek people want to follow another trajectory.
It represents GDP per capita as % of the European Union. In the 90’s it was 65 to 70% of the Union average. During the first decade of the 2000 it has jumped to more than 85% because of large European subsidies but without investment and productivity that could validate this improvement.
The austerity policy that has been put in place since the beginning of this decade has driven the GDP per capita to 60% of the Union average. This is lower than before the Euro Area inception.
Why would Greek people vote for the party that led Greece during this period of austerity?

This graph also indicates that the public debt adjustment that is needed, as public debt is on an unsustainable trajectory, will have to be done in coordination with the European institutions that hold the major part of it.
Greek people will not be able to make another adjustment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s