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Greece's stock market suffered the Lindner crash

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The true epicenter of German electoral quake is not in Berlin, but in Ans. At least in financial markets. In heart of euro zone, Börsians demonstrate serenity, despite prospect of a presumably weeks-long hanging party in government education.

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In rest of Greece, however, political election result from Germany is a source of excitement. The stock market exchanges are correspondingly strong. While Dax or EuroStoxx struggled to top after outcome of Bundestag election, and at last reached a good 100 points, courses in Ans are experiencing a real stock market quake.

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The Greek stock market index had risen by six percent since election. Since September saw end of grand coalition in Berlin, stock exchange lost even ten percent of its value. The politically sensitive bank shares are even more turbulent. They broke by a whopping 28 percent in past four weeks.

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The fear of Greek Börsians revolves around one name: Christian Lindner. The head of Free Democratic Party (FDP) has declared Euro-rescue policy to be a failure. In Greece, in particular, he considers a turnaround necessary. Before election, he had even been able to see how Euro problem was to be thrown out of monetary union.

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At same time, Greece seemed to be doing so well. The Ans government announced that country had grown by 0.5 per cent in second quarter, which is a surprisingly strong development. The EU Commission n launched its deficit procedure against country after eight years. "After many years of serious difficulties, Greece's finances are now in much better shape," rejoiced Brussels.

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The country also gained confidence in markets. At end of July, after a three-year break, country placed a bond with a volume of three billion euros in financial markets. Ans had to offer a yield of 4.6 percent for paper with a five-year term. And yet debt was more than twofold.

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Say: Greece could have collected much more money on exchanges. Even rating agencies were again more mildly tuned. In middle of August, Fitch raised rating to B-. For first time since 2015, Greece is thus no longer affected by flaw in a credit rating in lowest number of shares.

nGeetic press observes Merkel and Lindner exactly n

Since German election results have been known, however, good mood on Aegean Sea has disappeared. The wide range of political decision-making in far-away Berlin in Greece was already evident on day of election, when nearly all leading newspapers in Greece published ir titles with a portrait by Chancellor Angela Merkel. Since n, almost every step of Christian Lindner Widerhall has been taking place in Greece.

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The fearful question of what probable new government coalition of CDU / CSU, Greens and Free Democratic Party (FDP) means for Europapolitics of Germany, and thus also for future of Greece, does not only concern journalists and Börsians. Economists are also trying to find out what German election will mean for Greece's future.

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"The expected Jamaican coalition of Greens, FDP and Union could have a significant impact on speed and depth of euro integration," says Giacomo Barisone from European Rating Agency Scope. A coalition with Free Democratic Party (FDP) could also make negotiations for furr financial aid to Greece or an expansion of competences of European institutions more difficult, even if it was not yet clear to what extent.

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Bond markets have already reacted. The risk premiums of Greek bonds have recently risen sharply. Ten-year notes will be charged at a premium of 5.21 percentage points. In summer it was still 0.5 percentage points below.

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Last but not least, World Economic Forum (WEF) was cause of a drop of wormwood. In current "Global Competitiveness Report", which measures competitiveness of states, Greece fell from rank 81 to 86. Among biggest criticisms are persistently bureaucracy, political uncertainty and inefficient tax system of Greece.

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Greece is still dependent on aid. Among or things, country still shows an extremely high overall debt. This amounted to just under 180 percent of country's economic output. However, thanks to help of euro partners, Ans has to invest only two percent of its economic output for debt service.

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If subsidies were to be abandoned, costs could quickly rise to 10% and would no longer be financially viable. According to calculations by Fathom, debt ratio would rise to 250 percent over next eight years.

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To this extent, Ans is still dependent on a response from or euro countries. But in face of expected government coalition in Berlin, this has become much more difficult since last Sunday.

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