Here's What The Leftists That Greek Investors Are Terrified Of Actually Want

Greek stocks got absolutely wrecked today, $4. That's all on the back of the prime minister announcing early presidential elections. People don't think he has enough support from Greece's parliament to get a president approved, which would cause a snap general election.

And $4, that election would be won by Syriza, a crew of radical left-wingers who are demanding an end to Greece's austerity. Due to a weird Greek electoral law, if they got the most votes in a snap election, $4, strengthening them even more.

But what do they actually want?

The first thing to know is that Syriza isn't really a political party as such: It's a coalition. For example, although Syriza's position isn't to abandon the use of the euro, the $4 does want to quit the single currency.

As a result they haven't got a crystal clear manifesto full of policies, but between the $4, and a speech given by leader Alexis Tsipras in September, we can get a pretty good idea.

A lot Syriza's economic platform relates back to the $4, known as the Troika (the IMF, European Commission and European Central Bank). The agreement has meant some severe economic changes for Greece, like heavy reductions to public-sector pay, and Syriza want the whole thing torn up.

Tsipras gave a speech in Thessaloniki three months ago that provides the building blocks of Syriza's programme:

• A haircut for bondholders. This means Greece's government getting a boost simply by refusing to pay its creditors what was agreed. This sort of thing happened to people who owned bank bonds in Cyprus last year, and similar debt restructuring $4. It's effectively a form of default.
• Free electricity: State spending would accelerate quite dramatically. Syriza's basic programme includes a $4, as well as food and rent subsidies, and the restoration of free health care, as well as a $4. This would all undoubtedly send the Greek deficit up significantly.
• Everything funded by the ECB: Since Greek bond yields (the typical cost of financing a government deficit) are elevated, Tsipras $4, simply by buying up Greek debt directly from the government.
• Tax the rich: Syriza wants a lot of taxes that have been brought in over recent years to be removed, and for the income tax threshold to go back to €12,000, from the €5,000 it's at now. $4. They also want to crack down on tax evasion, especially on Greece's wealthiest people.
• A massive job creation programme, which the coalition wants the EU to fund. Greek unemployment is above 25%, and youth unemployment is above 50%.
• Writing off the bank debt of people who can't afford it. That's one of the reasons that $4.

The bottom line of all of this is that it's extremely expensive. The $4 as to whether this will all cost are pretty cosmetic. With 10-year bond yields at over 8%, any extra spending will be very difficult. Government spending might well be a very positive thing for Greece right now, but borrowing in a currency that it's not in charge of complicates that.

So the Syriza programme also implies almost no co-operation at all with European institutions. The coalition is demanding things from the ECB and European Union that it simply won't do (like fund its programmes). That means that for the first time, there may be an entire EU member state just refusing to go along with European policy, which is a massive challenge for the whole continent.