Greece Chooses Anti-Austerity Party in Major Shift
The left-wing Syriza party won a decisive victory in national elections, positioning its tough-talking leader, Alexis Tsipras, to become the next prime minister.
Mr. Tsipras, 40, declared that the era of austerity was over and promised to revive the economy. He also said his government would not allow Greece’s creditors to strangle the country. “Greece will now move ahead with hope and reach out to Europe, and Europe is going to change,” he said. “The verdict is clear: We will bring an end to the vicious circle of austerity.”
A ‘Grexit’ would exacerbate the Euro’s downtrend, and Greece may return to using the Drachma – the Greek currency used until the introduction of the Euro. Given how heavily indebted Greece was during the height of the financial crisis, an isolated Greece isn’t a very attractive investment option.
Therefore, if the Drachma was reintroduced, it’s the value is likely to be considerably lower than it was before the currency was swapped out for the Euro.
Based on current exchange rates, one Euro is equivalent to 340.750 Greek Drachma, while one Pound is worth 455.50 Greek Drachma.