If Syriza goes too far, Germany can grexit

According to Der Spiegel news weekly, German Chancellor Angela Merkel and her finance minister Wolfgang Schauble finally consider Greece’s exit from the euro area – the “Grexit” – would be “manageable”. Such remarks came as Greek far-left Syriza party is likely to win the early general elections called for January 25, 2015.

Led by 40-year-old Alexis Tsipras who once said that “euro is not my fetish,” Syriza became Greece’s first political force in the 2014 European Parliament election. With Tsipras as the likely next Greek Prime Minister, German top officials think the so-called anti-establishment leader will question the austerity measures which have been applied for several years and fueled much dissatisfaction among the Greek people, but prevented the Grexit.

Although Syriza officials stressed that exiting the euro area (immediately) is out of the question, Germany somehow replied that if Syriza dramatically changed Greece’s political and economic course, then it would rather leave the euro area. “If Tsipras (…) thinks he can cut back the reform efforts and austerity measures, then the troika will have to cut back the credits for Greece,” Michael Fuchs, a senior member of German Chancellor Merkel’s CDU was quoted as saying.