Syriza's victory in Greece's General Election has
understandably stoked fears of a Greek exit from the single
currency. This week we explain why we think Greece is most likely
to stay in the single currency. It's been a busy week in the
euro area with the European Central Bank launching a programme of
full blown Quantitative Easing on Thursday. We also briefly assess
whether Quantitative Easing could mark a turning point for the euro
area economy.
Despite all the media talk of a Greek exit from the euro area,
Syriza is a pro-euro party. True, it wants to re-write the rules
for membership, casting off the austerity imposed by Greece's
international creditors, but it wants to stay in the euro area.
This policy of having your cake and eating it has electoral appeal.
Yesterday's vote was against austerity, but those who voted
overwhelmingly want to stay in the single currency. In a recent
poll, 75% of Greeks polled said that Greece should remain in the
euro "at all
