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Jane Richey / May 15, 2012

New Elections for Greece in June

Greece will hold a new election in June after days of talks failed to resolve the country’s political deadlock, party leaders said Tuesday.

The Athens Stock Exchange plunged on the news, diving 4.86 percent minutes after the announcement before recovering somewhat.

The May 6 election left no party with enough votes for a majority in parliament and repeated efforts over nine days to cobble together a coalition government proved fruitless.

“The country is unfortunately heading again to elections,” Socialist party leader and former finance minister Evangelos Venizelos said. “It is heading back to elections in a few days under very bad circumstances, because certain people coldly put their short-term party interests above the national interest.”

The protracted political uncertainty has worried Greece’s international creditors, who have extended the country billions of euros in rescue loans over the past two years. The election campaign was dominated by the debate over Greek’s dismal financial state and the strict austerity measures taken in return for the bailout _ and anti-austerity parties on both the right and the left made huge gains in the vote.

Venizelos said the head of the small Democratic Left party, Fotis Kouvelis, had proposed forming a two-year government, but had insisted that it include the anti-bailout radical left Syriza party.

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Filed Under: Fiscal Responsibility, Politics Tagged With: Athens Stock Exchange, bailout, Greece, party interest vs national interest

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