The formation of a new left wing Greek government has elevated the risks of a eurozone breakup to levels “significantly higher than at any point in 2012â€, according to Barclays.
2012 is widely viewed as the height of the eurozone crisis. A cocktail of political populism across the continent and the prospect of a deflationary spiral has now elevated the risks of a breakup even higher in 2015.
“The risks have also risen as the periphery, especially Spain, is aligning itself with the views of several countries in the core of granting few concessions to Greece on a new programme,†Francois Cabau of Barclays said.
Syriza leaders view the burden of debt imposed on Greek shoulders as far too heavy to pay, and have sought some form of relief.
