Greece faces an imminent political deadlock – Chances of exiting from Euro

President Karolos PapouliasPresident Karolos Papoulias of Greece failed in his endeavors to draw a consensus among various political leaders for a final round of talks in order to avoid new elections. A wave of fear emerged among the masses that the country is heading for a bankruptcy and exiting from the euro zone. With this news, the European shares tumbled down and caused a rise in the Spanish and Italian bond rates. The debt crisis in the euro zone seems to be provoked once again.

Greece’s political environment is in disorder as the elections that were conducted on 6th May lead to a parliament being divided into supporters and opponents of 130 billion euro ($168.3 billion) neither of them was unable to form a government.  Every effort put in by President Karolos Papoulias on Sunday by summoning the party leaders and cajoling them proved to be a disaster. A fresh round of talks is expected with the four party leaders on Monday evening.

However, these talks are also deemed to fail before the beginning itself as the young leader of the radical leftist party – SYRIZA- dropped a bombshell that he will not attend the meeting and another leftist leader refused to attend the meeting without the leader of –SYRIZA- party.

Now the president has no other option except to call a fresh round of elections in case he fails to remove the deadlock among the parties. The poll if any is expected to during the mid month of June.   Now Greece is expected to run out of its money in the beginning of next month and with no orderly government in place for asking a fresh amount of aid, investors are speculating that there will be an imminent Greek default and that in turn will result Greece to exit from the Euro Zone.

Germany requested the Greece government to form a feasible government but has accepted that the Greece is indeed in trouble. Slowly the devil of bankruptcy and return of Greek drachma is lingering on the heads of the Greek people and they are ready to accept it. The people of Greece have no options left except to accept cuts in their spending in return for aid and an existence outside the precincts of euro which is more painful.

An inconceivable equation

The Ta Neal newspaper published a picture of a man shooting himself with a gun and blood dabbled in the form of map of Greece that depicts the present situation of elections in Greece that lead to bankruptcy. The European officials who were previously refused to discuss the Greek exit are now talking openly as a possibility that is quite painful. SYRIZA party is expected to win this time also as per the exit polls, if the elections are held once again. On Monday, SYRIZA announced that it is prepared to attend one-to-one talks with the president if the talks included all the parties minus the far-right Golden Dawn Party.

The grandiose talk of the party’s 37-year old young leader Alexis Tsipras who has earlier promised that Greece will concurrently revoke on the terms of its bail out and will be in a euro zone has been met with skepticism by the European leaders. The Finland’s Minister for European Affairs Alexander Stubb said that it is quite an impossible equation and he thinks that it is an irresponsible statement. But Tsipras anti-bail out message and his pro-euro stand has made him a star of the politics in the current situation. Tsipras on every occasion refused to join a coalition government with the socialist and conservative parties that ruled Greece for a number of years.

These socialist and conservative parties were given a butt by the voters for their role in agreeing to EU rescue that in turn required deep cuts in pensions and wages.  Greece is now in its fifth year of recession which in turn has made the ratio of jobless to 1:5 thus, pushing the social climate in a state of anarchy. On Monday three gas canisters exploded at the tax office in Athens causing minor damages as reported by the police.

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