Tsipras’s res­ig­na­tion seen as dou­ble-edged sword

Kathimerini English - - Front Page -

Euro­pean pol­i­cy­mak­ers saw Greek Prime Min­is­ter Alexis Tsipras’s res­ig­na­tion and elec­tion call as a gam­bit to con­sol­i­date sup­port for Athens’s new bailout, but the move un­nerved some in­vestors who worry that re­forms could be de­layed. Ger­man Bund yields fell on Fri­day as the prospect of snap elec­tions in Greece in­creased de­mand for safe-haven as­sets, which were also buoyed by con­cerns about a deep­en­ing eco­nomic slow­down in China. Chris­tian Lenk, strate­gist at DZ Bank, said Tsipras’s res­ig­na­tion was a dou­ble-edged sword. “In the short-term it cre­ates a lot of un­cer­tainty, it will cause a de­lay in the re­forms de­manded by the mem­o­ran­dum of un­der­stand­ing. Most likely there will be no progress un­til we see a new gov­ern­ment,” he said. “How­ever, look­ing at the latest polls, we see SYRIZA very strongly lead­ing among the Greek par­ties,” he added. “We see quite a strong win and the new gov­ern-

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