European press roundup: Europe in doubts after Syriza victory in Greece

The Euranet Plus News Agency press review of January 30, 2015, focuses on Syriza’s victory and the idea of a European car toll system

This week, our European press focuses mainly on the reactions across the continent after the victory of the anti-austerity party Syriza in the Greek elections on January 25. Even if the EU institutions were first seeking to respect the results, there are now growing concerns after the first public statements by  newly nominated Greek ministers.

As a matter of fact, Syriza, the far left-wing and anti-austerity party in Greece led by Alexis Tsipras, nearly gained the majority during the national elections on January 25.

This historic victory is seen as a starting point of a new era of anti-austerity policies in the EU. However, the big question whether Greece will have to repay its debts – or not – is still highlighted by the EU media.

Greece’s public debt is at around 320 billion euros and represents more than 170 percent of its national domestic product. The question is how strongly Tsipras will push his demands for a renegotiation of the bail-out programme agreed with the so-called Troika composed of the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF).

The Italian newspaper Il Sole 24 ore focused on whether Italy would be affected financially by the recent developments in Greece.

Italy: What is cost of Greece to Italian taxpayer? (Il Sole 24 Ore)

The author explained that Italy has helped Greece with bilateral loans, for example through the European Financial Stability Facility (EFSF).

The EFSF was created as a temporary crisis resolution mechanism by the euro area member states in June 2010. Via this scheme, Italy helped Greece with 25 billion euros.

In fact, the EFSF and its guarantors would not lose the capital invested in Greece, but the investment return will be a lot less than expected, stressed the author Isabella Bufacchi.

Then Bufacchi continued by arguing that Italy, within the eurozone, is a creditor nation when it comes to rescuing the ailing peripheral countries, like Greece.

However, she explained that even if Italy granted less to Greece than Germany or France, the country’s financial help will still have a greater impact, because borrowing is so much more expensive for the Italian treasury than for its German or French counterparts.

• Read the entire article in Italian – recommended by Italian Euranet Plus partner station Radio 24 II Sole

Spain: Syriza victory is not contagious to Spain, said Popular Party PP (ABC)

The Spanish newspaper ABC brought several reactions to the victory of Syriza, especially the one of the Spanish conservative party, the Popular Party (PP).

According to José Ramón García Hernández, who is the secretary of international relations and member of the National Executive Committee of the PP, “socialism is the big loser.”

He explained that “the Greeks have chosen between two alternatives: populism (Syriza) and the centre-right (New Democracy, so far in power), while ‘the great sacrificial’ has been left unable to offer a programme that would appeal to the citizens of Greece out of the economic crisis.”

The PP leader, however, denies the influence of Syriza in Spain. In his view, Syriza has diverted attention towards debt and the euro, but has not explained how it could create employment.

• Read the entire article in Spanish – recommended by the Spanish Euranet Plus partner station Castilla y Leon es Radio

The Croatian newspaper Jutarnji list published this week an analysis on Syriza’s challenging position after its victory.

Croatia – Greece’s largest passion: how to repay the debt? (Jutarnji list)

According to the Croatian daily, it is clear that the Greek level of debt is unsustainable, but the big question is how to restructure and keep the country in the euro area after its promise to abandon the policy of austerity.

The new Greek government is facing a very big challenge, wrote Marina Klepo, between promising to abandon the policy of savings and at the same time keeping the euro.

During the election campaign, Syriza’s leader Tsipras promised to immediately withdraw budget cuts and tax increases that have led to unemployment of over 25 percent and pushed millions of people into poverty.

However, explains the author, after the victory celebrations, markets experts already warned that it won’t be easy for the winners of the elections to face reality.

In fact, on Wednesday (January 28), Greek financial markets were in turmoil.

Greek five-year bond yields jumped to 13.5 percent, reflecting fears among investors who fear they may not get their money back.

• Read the entire article in Croatian – recommended by the Croatian Euranet Plus Partner HRT Radio

Poland: The euro-zone has fired its bazooka (Newsweek)

The Polish edition of the news magazine Newsweek published this week an opinion about the European Central Bank’s huge stimulus program announced on January 22.

The European Central Bank (ECB) plans to buy 60 billion euros in governments bonds per month, starting from March this year until September 2016.

The author explained that there is no certainty at pumping all those hundreds of billions of euros into the market will boost the eurozone’s economy and free it from the grip of deflation. But the die is cast.

It has been a long time since a meeting of the ECB has stirred so much emotion as the one on January 22, stressed the author.

And it was not because of the steady interest rates, which were not supposed to be changed and were, indeed, not, but because the stimulus programme represents one of the most important decisions in the ECB’s history.

• Read the entire article in Polish – recommended by the Polish Euranet Plus partner station Polskie Radio

Slovenia: EU Commissioner Violeta Bulc calls for unified European car toll system (RTV SLO)

The public radio and television broadcaster of Slovenia, RTV SLovenia, member of Euranet Plus network, this week focused on the idea of the Violeta Bulc, Slovenian European Commissioner for Transport,  to create a Europe-wide toll system for vehicles.

The Slovenian Commissioner stated on January 25 in the German newspaper “Welt am Sonntag” that she wants a European toll system in which each driver pays for the distance they drive, without any discrimination linked to their nationality.

“No one should be discriminated against. No matter where the driver comes from, the amount should be based on the number of kilometres driven and should not be time-dependent. Such a system would be just and that is why we are examining it,” Bulc said.

She also added that this was a medium-term plan.,

At the same time, she warned the German Minister of Transport, Alexander Dobrindt, that German plans of a toll only for foreigners, which is supposed to be implemented in 2016, are incompatible with EU law.

Although German car drivers would also have to pay the toll, this cost would be deducted from their existing car tax as compensation.

• Read the entire article in Slovenian – recommended by Slovenian Euranet Plus partner station RTV SLO

Estonia: MEP Yana Toom calls on European Parliament to drop sanctions against Russia (ERR)

The Estonian Public Broadcasting ERR reported on the call of Yana Toom, member of the Estonian Center Party and member of the Liberals and Democrats Group (ALDE) at the European Parliament, to ease the EU sanctions against Russia.

She said in the European Parliament on Wednesday (January 28) that the European Union should put an end to its sanctions against Russia: “The need for cooperation with Russia, and for defrosting EU-Russian relations, is clear, but sadly not to all representatives,” she said, adding that the EU’S humanitarian aid to Ukraine and support for reform will not suffice.

ERR also reported that Toom added: “The economic and energy crisis in Ukraine cannot be solved without the active and positive inclusion of Russia. We should be realistic.”

• Read the entire article in English  – recommended by Estonian Euranet Plus partner Sky Media

Moreover, the Estonian newspaper “Postimee” revealed (read the article in English here) the costs of Toom’s upcoming conference in her electoral district Narva. The conference on February 7 has the title “Narva – Gate of Europe”  and will cost around 30.000 euros.

• Author: Laeticia Markakis, Euranet Plus News Agency

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