What to Expect From Greek Elections

Greece, which is once again at the heart of the eurozone crisis, will hold parliamentary elections Jan. 25. The two main contenders are the traditional, center-right New Democracy party, led by Prime Minister Antonis Samaras, and the left-wing Coalition of the Radical Left party, known as Syriza, led by Alexis Tsipras. Most opinion polls suggest that Syriza is three to five points ahead of New Democracy among voters.

Regardless of who wins the Jan. 25 vote, Greece's debt situation will be at the core of the agenda of any new government, and Stratfor expects Athens to hold negotiations with its lenders. The European Union probably would extend Greece's debt maturities and interest rates, but EU officials are not likely to grant Athens new write-downs for Greece's debt. The tone of the negotiations will vary, depending on who is in charge in Athens after Jan. 25, but the next Greek government is unlikely to make any radical moves for at least the first half of the year.