Greek Crisis Talks Fail, New Election in June

Published Wed, May 16th, 2012   Wall Street Daily Research

 

After three days, crisis talks among Greece’s parliamentary party leaders failed to establish a coalition government, necessitating a newly held election to take place in mid-June. In the meantime, an acting “caretaker” governance body will remain in place.

Evangelos Venizelos is a Greek socialist political leader:

“We shouldn’t have reached this point… we are forced to go [to elections]. Let’s go united, in the best way, to safeguard Greeks. Let’s move towards something better, and for God’s sake, let’s not move towards something worse.”

But whether it’s for better or worse, when mid-June arrives, polls show that anti-bailout party, the Radical Left Coalition, will be the likely victor of the re-held elections. The party’s leader, Alexis Tsipras, says he would overturn the $130 billion bailout and lift austerity measures, though he still favors Greece’s eurozone membership.

Many fear, however, that in the end Tsipras’ cannot have it both ways. If Greece reneges on its bailout agreement, it may be forced to exit the eurozone, leaving the country bankrupt and the euro in renewed economic turmoil.