Greek election: the beginning of the end of austerity?

Based on exit polls, the anti-austerity party Syriza has emerged as the clear victor in the Greek election held today. The consequences of the results are very difficult to predict. It is highly doubtful that Mr Tsipras will be able to achieve everything that he has promised to the Greek electorate, for the simple reason that the troika composed of the EC, the ECB, and the IMF is extremely unlikely to accept fundamental changes to the general course of austerity or agree to write off debts.

It could end up as a huge disaster for Greece: if the new government were to fail to negotiate with the troika, and renounces austerity as promised, resulting in the end of the financial assistance, then it would very likely result in the total collapse of the Greek banking system, lead to controls to combat capital flight, and exit from the euro. It could essentially be the continuation of the austerity programme with slightly different emphases: Mr Tsipras could take Greece to the edge of the precipice, like Cyprus in 2013, but pull back when the likely dire consequences become apparent, for some concessions from the troika that he could show to the Greek people.

I doubt that this election result is the beginning of the end of austerity as such. If I had to guess, there would be a lot of wrangling, but hopefully some sort of agreement will be reached, and that life for the people in Greece will finally improve.