Update 3 - Hope for the eurozone as Greek right wins election
The pro-euro conservative New Democracy Party appears to have won the general election in Greece, seen as critical for the country to stay in the eurozone.
With 40% of the votes counted, New Democracy won 30.38% of the vote compared to 26% for the left-wing anti-austerity Syriza party.
The outcome of today's vote could determine whether Greece remains in the euro or is forced to leave the joint currency, a move which could drag down other European countries and have unforeseen consequences for the global economy.
Whichever party comes first gets a bonus of 50 seats in the 300-member Parliament.
Syriza head Alexis Tsipras has vowed to cancel the terms of Greece's international bailout deal and repeal its austerity measures - a move many think will force Greece to leave the eurozone.
New Democracy leader Antonis Samaras says his top priority is to stay in the euro but renegotiate some terms of the bailout.
New Democracy is expected to seek a coalition with old rival Pasok - which appeared to have won 13.5% - to form a government. However Pasok may opt to back New Democracy in a confidence vote, without actually joining it in a coalition. The Democratic Left, which won 6.6% may also be in the coalition.
As central banks stood ready to intervene in case of financial turmoil, Greece held its second national election in just six weeks to try to select a new government after an inconclusive ballot on May 6.
The two parties vying to win have starkly different views about what to do about the 240 billion euro in bailout loans that Greece has been given by international lenders. One wants to tear up the deals and void the harsh austerity measures demanded by lenders that have caused Greek living standards to plummet. The other backs the bailout deal but wants to amend it.
The choice - the most critical in decades - could determine whether Greece abandons the joint euro currency and returns to its old currency, the drachma. But there are no rules governing a country's exit from the eurozone, and a Greek exit could spark a panic that other debt-strapped European nations - Portugal, Ireland, Spain and Italy- might also have to leave.
That domino scenario - known in economic terms as contagion - could engulf the euro, causing a global financial panic not unlike the one that gripped the world in 2008 after the investment firm Lehman Brothers failed in the US.
See possible impact on Malta at: http://www.timesofmalta.com/articles/view/20120606/local/Fears-over-Malta-banks-debt-risk-as-Greek-economy-is-hit.422963
19 Comments
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Anthony Scicluna
Jun 18th 2012, 08:13
Mr Cardona
It depends on how you define austerity. It could mean increased consumer saving or curbing consumer spend based on debt or reducing excessive government spend or increasing efficiency. These measures should lead to prosperity. You raise a fundamental point - you need to deploy growth strategies. However, you can do both at the same time - raise your revenue through increased business investment while making the economic motor efficient through being careful
A Cardona
Jun 18th 2012, 07:16
Don't want to be a wet blanket but in reality ...nothing has changed.... just nothing at all. I cannot understand how one can believe Antonis Samaras when he tells Greeks that unpopular austerity measures "will bring the country back to prosperity." He should focus on how to create growth and not austerity. Easier said than done but that should be his job.
How can austerity bring prosperity??? Did the current austerity measures bring anything ???
The only change that occurred is an extension of the Greek agony. Same story is happening again giving all the bloc false hopes. Riots will be the first symptom as usual.
MALCOLM SEYCHELL
Jun 17th 2012, 22:39
The Euro is finished.
Right or left doesn't make any difference.
The bail outs are being paid out by almost bankrupt countries like Italy, Malta, Portugal etc etc.
m. borg (slm)
Jun 17th 2012, 22:20
The Greek conservatives have regained the rebus they had created in the first place.
That is poetic justice, they made the bed then they should lie in it, only time will tell what the greeks have really chosen.
J Carachi
Jun 18th 2012, 08:39
Actually it was the PASOK Socialist party who started this whole mess in the first place, the conservatives just weren't able to solve the problem, so check your facts before commenting
joseph engerer
Jun 17th 2012, 22:07
there is a new order coming to europe, get used to it.
George Cutajar
Jun 17th 2012, 20:39
The Greek people have spoken and voted to not only remain in the EU but also in the Eurozone. They chose between a party with a vision and a clear policy to bring the country out of the dire straits it ended up in.
The radical leftist Syriza Party sowed doom and gloom but fortunately did not manage to convince enough Greeks to trust them. The Greeks stuck to the tried and tested party with new faces and hopefully a new coalition will be formed to attempt the turnaround.
Colin Camilleri
Jun 17th 2012, 20:56
George, your sublime blue rhetoric does not help here and sends a distorted picture. Try to be objective. Greece ended up in this mess because of the Conservative governments it had in the recent past.
Besides, the people yes have spoken and the absolute majority have voted LEFTIST parties.
The New Democracy may be the strongest party but it cant rule on its own without a coalition with the Leftist parties.
So please stop with the misinformation with the hope of giving an unjust advantage to GonziPN.
Just be happy that whoever wins in Greece, pays our money back!
Edward Curmi
Jun 18th 2012, 09:30
George hope the same will happen in malta..better the devil u know !
Colin Camilleri
Jun 17th 2012, 20:33
Seems to me a huge dilemma here. If the New Democracy pro bailout party wins, Greece may stay in the Euro and we MUST continue to pump in money into them... with a "certain" risk that we may not see the money again. Lets face reality... if Greece cant even pay what they owe us and the rest of the EU, how can we expect them to pay additional loans which we and the EU give them?
If the Syriza party wins, though unlikely, it may reject the bailout and Greece might be kicked out of the Euro. Of course we can kiss good bye to our loans in the region of at least 250 million euros.
What is the best solution? Honestly, I would rather see Greece kicked out now. Sooner or later we shall all to realise that it would have been the best option to take losses now and kick them out rather than continue to pump in money into a broken and leaking jar.....
In any case someone must take responsibility in the local arena! Malta needs its money back! with or without interest... We needed collateral for loaning Greece all those millions! Now what?
Time will prove me right... Greece is no good. it is bankrupt and it needs to be kicked out to regenerate its economy on its own.
We cannot expect our money back from someone who doesnt have the money to eat let alone pay us back, and with interest.
Paul Preston
Jun 17th 2012, 22:41
Totally agree Colin .. This is simply "imo" a classic case of the "Blind leading the Blind" sorry to say !
mark borg
Jun 17th 2012, 20:31
Gejna Sew ! nidependu nerqux bil vot gol grecja !!!!!! qed nara kemm avvanzajna wara 8 snin go l-EU ...qed nara x gid !
issa nistenna il kummenti vojta banali bla sens ta dawk li dahhluna fdl bahar ta inkwiet...jghidulna li bqajna barra konna nkunu ghar !!!! ara bhal dak li qallu, kif tista tghid kieku ...bla, bla, bla.... kieku ....LI JIMPURTANI KIF QEDIN .....U IRRANGAJTU LIL PAJJIZNA GHAL FRISK GHAX ZGUR KONNA HAFNA AHJAR ! GIBTUNA SEW ...MILL IMMIGRANTI ILLEGALI LI TWIKKEJNA SA NITOLBU L-ALLA LI MA NITILFUX FLUSNA TAL-BANEK ....PROSIT
Edward Curmi
Jun 18th 2012, 09:31
Ghaziz Sur Borg.
ma nahsibx li int qed tara madwarek li bis sahha ta EU ghandna erba toroq sura fl-ahhar u hafna affarijiet li minghajr L-EU ZGUR ma kienux isehhu!!
Toni Borg
Jun 17th 2012, 20:10
Should the newly elected government pull Greece out of the eurozone,
can they kindly enusre that they announce an early repayment program of all the funds paid
to them by the other EU member states please!
I hope they are not expecting the EU to strike out these debts???
A Spiteri
Jun 17th 2012, 19:43
whatever happens the euro is doomed!
greece is not the only country in the red...spain, portugal, italy are even in a worse mess!
the euro is a representation of the centralization of power idea. it simply cannot work. you can never force together economies like greece and scandinavians!
GL Calleja
Jun 17th 2012, 19:12
There goes our 80,000million euro bail out money plus? Mamma Mia.
John Benner
Jun 17th 2012, 19:09
Some of the media here in the UK are now predicting that German Chancellor Angela Merkel might back track on her previous statements and in fact give Greece more time to pay back the loan in other words the terms of the loan will be relaxed , Berlin knows that the exit of Greece is not in the interest of the EU .But on the other hand if this were now to happen what kind of message will that send out , Greece is due for another payment within weeks , it seems the eurozone countries will continue to remain in a situation of uncertainty , perhaps the only way we will see an end to this is when the euro becomes completely worthless or the German taxpayer says to Merkel enough is enough ,and then action will become inevitable and with German elections not far off Merkel is in a dilemma.
henry caruana
Jun 17th 2012, 20:08
There won't be problem for Greece
We MALTA will be there behind Greece when payment is due next month.
Wonder who will be behind us next April
Paul Preston
Jun 17th 2012, 22:44
Agree John .. Merkel's days are very much numbered "imo" .. But no doubt time will tell as always !
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