Burton says Greek crisis could check support for left-wing parties

Events in Greece could check the growing support in Ireland for Sinn Féin and other left wing groups in elections due early next year, Joan Burton said on Tuesday.

The Tánaiste, whose centre-left Labour Party is still suffering in opinion polls after imposing tough budgets during the first half of its term in coalition government, said: “I suspect that the happenings in Greece might give some pause for reflection...

“I don’t want to see pensioners in Ireland queuing up outside ATMs,” Burton added, referring to the capital controls that Greece has had to impose in its standoff with creditors.

Ireland’s economy has become the fastest growing in Europe since it completed its own bailout in late 2013 and fears that Greece may have to quit the euro zone have had little impact on Irish borrowing costs.

“We have hard won gains which [Irish] people suffered a lot for. When it comes closer to polling day, my guess is they will want to see a serious [government] programme,” Burton said in an interview.

Yields on Irish 10-year debt stood at 1.66 percent on Tuesday, compared with a high of 15 percent in 2011.

“The market reaction has been particularly muted,” Burton told Reuters in an interview. “Certainly in Ireland we have recovered to a position where we have a thriving trading economy but troubles in the euro zone, if it worsens the economic outlook, obviously potentially could affect Ireland.”

Irish Central Bank Governor Patrick Honohan, who is also a member of the European Central Bank’s governing council, briefed senior ministers on Monday.

Burton said Honohan “set out the narrative of the ECB in terms of defending the euro, if required.” She would not elaborate.