By Robert Winnett, Alex Spillius in Athens and Bruno Waterfield | Brussels | 9:57PM BST 17 Jun 2012
Although the New Democracy party won the largest share of the vote, it will have to rely
on its discredited socialist rivals Pasok to form a coalition government to accept the bail-out,
keeping Greece in the single currency.
Both parties, which have ruled Greece for 38 years, are widely blamed for a crisis that has
taken the country to the brink of economic collapse. Between them they won only about 40
per cent of the vote. By contrast, parties that opposed the bail-out increased their share of
the vote to over 46 per cent, with Syriza, the radical Leftist coalition that wants to discard
the agreement, almost winning outright.
Last night, Syriza insisted it would not join any kind of national unity government and
promised to provide strong opposition to any pro-bail-out coalition.
<a href="http://s1267.photobucket.com/albums/jj559/365Wildfire/?action=view&current=greece-elections-j_2251113b.jpg" target="_blank"><img src="http://i1267.photobucket.com/albums/jj559/365Wildfire/greece-elections-j_2251113b.jpg" border="0" alt="Photobucket"></a>
Financial markets are expected to react to the tight election results, with speculation
mounting that Greece may yet be forced out of the single currency. A weakened
government will struggle to implement the austerity measures demanded by its EU and
IMF creditors.
Central banks across the world are thought to be ready to pump billions of dollars, euros
and pounds into the global economy today if it becomes necessary.
David Cameron, who left for the G20 summit in Mexico late last night, is today expected to
warn that global leaders must now “fight for the future of our world economy”.
European leaders including Angela Merkel, the German chancellor, and François Hollande,
the French president, delayed leaving for the summit as they assessed the impact of the
Greek result last night in a conference call. France said the discussions had been “intense”.
Germany may have to provide billions of euros for a new rescue package.
Senior German figures indicated within minutes of official Greek exit polls last night that
they were prepared to renegotiate the terms of the bail-out with Greece. However, the
fragile nature of the Greek government means this strategy could threaten the crisis
dragging on and continuing to undermine other economies.
Although the New Democracy party won the largest share of the vote, it will have to rely
on its discredited socialist rivals Pasok to form a coalition government to accept the bail-out,
keeping Greece in the single currency.
Both parties, which have ruled Greece for 38 years, are widely blamed for a crisis that has
taken the country to the brink of economic collapse. Between them they won only about 40
per cent of the vote. By contrast, parties that opposed the bail-out increased their share of
the vote to over 46 per cent, with Syriza, the radical Leftist coalition that wants to discard
the agreement, almost winning outright.
Last night, Syriza insisted it would not join any kind of national unity government and
promised to provide strong opposition to any pro-bail-out coalition.
<a href="http://s1267.photobucket.com/albums/jj559/365Wildfire/?action=view&current=greece-elections-j_2251113b.jpg" target="_blank"><img src="http://i1267.photobucket.com/albums/jj559/365Wildfire/greece-elections-j_2251113b.jpg" border="0" alt="Photobucket"></a>
Financial markets are expected to react to the tight election results, with speculation
mounting that Greece may yet be forced out of the single currency. A weakened
government will struggle to implement the austerity measures demanded by its EU and
IMF creditors.
Central banks across the world are thought to be ready to pump billions of dollars, euros
and pounds into the global economy today if it becomes necessary.
David Cameron, who left for the G20 summit in Mexico late last night, is today expected to
warn that global leaders must now “fight for the future of our world economy”.
European leaders including Angela Merkel, the German chancellor, and François Hollande,
the French president, delayed leaving for the summit as they assessed the impact of the
Greek result last night in a conference call. France said the discussions had been “intense”.
Germany may have to provide billions of euros for a new rescue package.
Senior German figures indicated within minutes of official Greek exit polls last night that
they were prepared to renegotiate the terms of the bail-out with Greece. However, the
fragile nature of the Greek government means this strategy could threaten the crisis
dragging on and continuing to undermine other economies.
