Greece’s Upcoming Election May Be its Undoing

Published Thu, Apr 12th, 2012   Wall Street Daily Research

Support for the two parties that backed Greece’s international bailout – the New Democracy and Socialist PASOK parties – remains at historic lows less than a month before the general election.

One Greek citizen told Reuters:

“They have completely lost our trust. My vote will be a reactionary vote. I will vote for a smaller party, so that they can learn to appreciate the public.”

Greek Prime Minister, Lucas Papademos, is working to straddle the line between sympathy, while trying to convince voters that the austerity measures are a necessary burden that will pay off in the long run:

“Greece is in the middle of a difficult journey. The social and economic cost is heavy. Exhaustion, disenchantment, in some cases indignation, are understandable and on some occasions justified, in particular when the burden is not shared fairly.”

If a smaller party wins the election, there’s a possibility that Greece will renege on its monetary cuts – an ominous scenario for international lenders and eurozone leaders.