Aberdeen comments on Greek elections

Aberdeen Asset Management Chief Economist Lucy O’Carroll comments:

“A week may be a long time in British politics but a mere four days in the Eurozone have been bookended by two historic events: QE and now the election in Greece of the Eurozone's first austerity-rejecting, radical-left government. The size of Syriza's win, and its initial moves towards a coalition with the Independent Greeks, suggest that leader Alexis Tsipras will start off playing hard ball with the Troika. But Greece's economy and financial system remain dependent on external funding and a compromise deal is still the most likely outcome. The gap between Syriza and the Troika is wide, however, and the path towards agreement remains unclear. Against this background, markets are likely to remain nervous, though QE may provide comfort in the meantime.”