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The Syriza party's coalition with the Independent Greeks party, its right-wing counterpart, shows the possible direction the Old Continent is headed, according to Jim Cramer.
Cramer made his remarks after Syriza's victory in Sunday's Greek elections, indicating its leader, Alexis Tsipras, will be Greece's new prime minister. European markets rose after investors digested news of the anti-austerity party's victory, while the euro hit another 11-year low Monday. The Independent Greeks party announced its government coalition with Syriza on Monday.
"Everything just seems like it's going the non-German way, which means that they're trying to get expansion rather than a balanced budget," Cramer added. He also said worldwide reaction to the Greek elections will come in two waves. "The first wave is, 'Wow, this is bad for the currency.' The second wave is, 'Wait a second, the guys who want more growth just won.'"
Cramer also said the European Central Bank's recent actions serve as a deterrent to far-right sentiment growth on the Old Continent. "I think [Mario] Draghi is being motivated by the idea that the wrong parties are going to start winning, " he said.
The ECB announced Thursday it would start buying 60 billion euros ($68 billion) per month in corporate and government bonds.
—CNBC's Holly Ellyatt contributed to this report