The dust settles on Greece, but where does it go from here?

New Democracy must now form a coalition, and the EU has a contradiction to resolve

The New Democracy party has won the Greek legislative elections with 29.7 per cent on the vote, narrowly beating the radical left-wing party SYRIZA, which earned 26.9 per cent, in what is widely seen as a referendum on the Greek people's acceptance of the EU-imposed austerity package.

Under Greek electoral law, ND is awarded an extra 50 parliamentary seats for coming in first place, which means it has 129 seats overall. A viable coalition requires at least 150, however, so it will still have to find a coalition partner. It is most likely to join forces with the centre-left party, PASOK, previously its major opponent in fights for the centre-ground of Greek politics but now an uneasy bedfellow as implementing the European memorandum (which ties the Greek government to large spending cuts) takes priority.

A PASOK-ND coalition would have 162 seats, and appears likely to be topped up with another 17 from the Democratic Left party (DIMAR), formed of ex-PASOK and SYRIZA MPs. There are several hurdles to be overcome before this coalition can be put in place, not least of which is the self-serving nature of PASOK itself.

Reports from Greece indicate that PASOK's leaders are only too aware that being in charge of a second round of crippling spending cuts could destroy their electoral base, particularly when they have such a viable contender for the left's votes in the form of SYRIZA. As a result, senior figures at PASOK are suggesting that they won't join a coalition unless SYRIZA joins as well - something which the radical left is unlikely to countenance.

While it seems likely that PASOK are only making such a demand out of a desire not to seem too eager to run into the arms of their former enemies, it highlights the difficulty this coalition will have in doing anything not related to the near-state of emergency that Greece is currently experiencing. Many of the more pessamistic analysts and commentators are predicting a breakdown in relations before the end of the year, leading to a third set of elections – one which SYRIZA would almost certainly win.

Even if the full ND-PASOK-DIMAR coalition comes about, all Greece has achieved today is a return to the status quo of earlier this year. Greece remains in the euro for the foreseeable future, but the root of its problems with the EU are no closer to being addressed. The austerity which the coalition will impose will keep Germany and the ECB happy, which will keep money flowing into the country for the time being (an undoubtedly good thing, since reports had suggested that Greece was likely to run out of money to pay its public sector around mid-July without more European funds), but eventually that spigot will have to be turned off.

In addition, the bank jog which could see Greece being mechanically ejected from the single currency won't stop just because SYRIZA came in second place. Deposits have been steadily flowing out of Greek banks since 2009, and if too many euro end up in German banks, the Greek banking sector could fail in one go. 

Even the surface level negotiations – the ones which don't solve the underlying contradictions, but merely provide the funding and credibility for Greece to carry on as it has – could go in any number of directions. The troika (the European Central Bank, the European Commission, and the IMF) is likely to head to the country as soon as there is someone to negotiate with, and there have been reports that they are likely to give the Greek people a "reward" for being co-operative. German foreign minister Guido Westerwelle suggested that the coutnry may be given more time to repay its debts, and the Financial Times last week claimed that the EU was preparing to offer Greece discounted loans if New Democracy won the elections.

When the dust settles, the European Union will find that it has to decide whether it heads down the road of ever deeper fiscal integration, turning Greece into 

New Democracy leader Antonis Samaras. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty
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Goodbye, Sam Allardyce: a grim portrait of national service

In being brought down by a newspaper sting, the former England manager joins a hall of infamy. 

It took the best part of 17 years for Glenn Hoddle’s reputation to recover from losing the England job.

Between leaving his job as manager in February 1999 and re-surfacing as a television pundit on ITV during the 2014 World Cup, Hoddle was English football’s great pariah. Thanks to his belief in faith healer Eileen Drewery and a string of unconventional and unacceptable views on reincarnation, he found himself in exile following in a newspaper interview during qualification for England’s Euro 2000 campaign.

But just as Hoddle is now cautiously being welcomed back to the bosom of English football, current incumbent Sam Allardyce has felt the axe fall. After less than two months in charge of the national side and with only a single game under his belt, the former Bolton Wanderers manager was caught up in a sting operation by the Daily Telegraph — allegedly offering guidance on how to circumvent his employer’s rules on third-party player ownership.

The rewards for guiding an English team to major international success promise to be spectacular. As a result, the price for any failure — either moral or performance-related — is extreme.

Hoddle’s successor – the endearing Kevin Keegan – resigned tearfully in a toilet at Wembley after a tumultuous 18-month spell in charge. His replacement, the laconic Sven-Göran Eriksson, provided moments of on-field excitement paired with incredible incidents of personal indiscretion. His tangle with "fake sheikh" Mazher Mahmood in the run up to the 2006 World Cup – an incident with haunting parallels to Allardyce’s current predicament – led to a mutual separation that summer.

Steve McClaren was hapless, if also incredibly unfortunate, and was dispatched from the top job in little over a year. Fabio Capello – who inspired so much optimism throughout his first two years in charge – proved himself incapable of lifting the hex on English major tournament fortunes.

The Italian’s star was falling from the moment he put his name to the oddly timed Capello Index in 2010, although his sustained backing of then captain John Terry over a string of personal misdemeanours would prove to be the misjudgement that ultimately forced his exit. As Allardyce has found out, the FA has become increasingly hard on lapses in moral judgement.

English football is suffused with a strange mix of entitlement and crushing self-doubt. After a decade that has given us a Wimbledon champion, several Ashes triumphs, two Tour de France winners and eye-watering Olympic success, a breakthrough in this area has never felt further away.

In replacing Capello, Roy Hodgson — the man mocked by Allardyce during his hours supping pints with Telegraph reporters — had hoped to put a rubber stamp on a highly respectable coaching career with a spell managing his own country. But this summer’s farcical defeat to Iceland at Euro 2016 put his previous career in a much harsher light.    

Allardyce was a mix of the best and worst of each of his predecessors. He was as gaffe-prone as Steve McClaren, yet as committed to football science and innovation as Hodgson or Capello. He also carried the affability of Keegan and the bulldog spirit of Terry Venables — the last man to make great strides for England at a major tournament.  

And as a result, his fall is the most heartbreaking of the lot. The unfairly decried charlatan of modern football is the same man who built a deeply underrated dynasty at Bolton before keeping Blackburn, West Ham and Sunderland afloat in the most competitive league in Europe.

And it was this hard apprenticeship that convinced the FA to defy the trendy naysayers and appoint him.

“I think we make mistakes when we are down here and our spirit has to come back and learn,” Hoddle mused at the beginning of his ill-fated 1999 interview. As the FA and Allardyce consider their exit strategy from this latest sorry mess, it’s difficult to be sure what either party will have learned.

The FA, desperately short of options could theoretically turn again to a reborn Hoddle. Allardyce, on the other hand, faces his own long exile. 

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