The ranks of the ‘Syriza Tories’ have been swelling in the run up to the Greek elections this Sunday. As I say in the magazine this week, the ‘Syriza Tories’ have decided that the Eurozone crisis needs to be brought to a head. Their argument is that the one thing worse than the Eurozone breaking up, is this crisis dragging on for the rest of the decade and preventing the return of confidence to the global economy. So, they are rooting for the radical leftists in the Greek elections in the belief that a Syriza victory would force a resolution of the crisis one way or the other.
If Berlin responded to a Syriza victory by strangling Greece out of the single currency — as German officials keep hinting they would, then Germany would have to either rapidly propel the Eurozone into a proper fiscal union or the Euro would start to fragment.
What has become increasingly clear in the past few days is that Angela Merkel remains extremely reluctant to do what the rest of Europe wants her to do. She remains steadfastly opposed to Eurobonds in the current circumstances.
Certainly, it is hard to see how any more burden sharing can be sold to the German electorate while Greece remains in the Euro. Even if a pro-bailout New Democracy-led coalition can be formed in Greece, it is still going to have to ask for more money because the billion euros the troika is holding back until there is a new government is not enough to cover Greece’s bills for the next few months. New Democracy has also, in an attempt to blunt Syriza’s appeal, committed themselves to easing the terms of the bailout. This is not going to go down well with a German public that suspects the Greeks of not paying their taxes or working hard enough.