JP Morgan’s predictions on the upcoming Greek elections

Will JP Morgan’s predictions of a turn to the political center pan out?

JP Morgan and Chase released a detailed analysis of the Greek general election on September 20 and the prospective outcomes. The credit agency predicts that a new ruling coalition will mark a shift to the political center.

The analysis suggests a coalition between the Radical Left Coalition (SYRIZA), the centrist River (To Potami) party and the socialist PASOK party. The alliance will take place despite the fact that former prime minister Alexis Tsipras has ruled out that SYRIZA would join in a coalition with the two smaller parties that he depicts as old and establishment-orientated.

JP Morgan refers to Tsipras’ three reasons for holding snap elections:
* Getting a stronger grip on the SYRIZA leadership
* Capitalizing on his popularity in opinion polls
* Exploiting the political weakness of the opposition parties.

The tide turned against Tsipras, however. JP Morgan predicts that SYRIZA and ND will gather 23-24% and 37% of the votes respectively.