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Saturday, June 16, 2012

Greek election results Sunday are uncertain



A day before the election on Sunday June 17th many Greeks are angry now and anxious about the future. Stathis Psillos a philosophy prof. at the U. of Athens said:“People are in agony about their savings; their jobs, their safety, their future (and their children’s future),”

Polls have not been allowed for the last couple of weeks of the campaign but the two front runners New Democracy that is in favor of the bailout deal and Styriza that would rip it up and start over are very close to one another. Even New Democracy the center right party that came first last time wants to change some of the terms of the agreement although it voted in favor of the original deal.

The party that comes first gains an extra 50 seats in parliament under the Greek system so is the most likely to be able to form a coalition. However New Democracy was unable to cobble together a coalition last time around. If Styriza comes first there are several parties that it could probably bring into a coalition and form a government that would want to renegotiate the whole bailout deal. This result might result in markets falling throughout Europe and elsewhere. However as of the close Friday U.S. markets were still positive.

Many analysts are now predicting that Greece will eventually be forced into leaving the euro, that this is just a matter of time. For more see this article.

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