In-spite of Election results, Greece stands on knife’s edge

Greeks who have been caught up in the wave of austerity breathed a huge sigh of relief as they voted to show the World about their intention to stay in the Euro. However, the signs are all not positive, it would take a herculean task for the newly elected government to solve the problems and get the economy back on its feet.

The people of Greece are optimistic and euphoric about the election results. This gives the public some breathing space after the mayhem that has surrounded the nation over the past few months and the possibility of exiting the Euro.

The conservatives who’ve received the vote of confidence from the people of Greece will go forward with the bailout deal under which the European Union (EU) and International Monetary Fund (IMF) have demanded punishing austerity policies.

The second election in the last two months was held in the fear of the poll going either way. The people of Greece have been largely polarized in their opinions and it could have been anybody’s game. People have been torn between the opinions, where people have been willing to go to any lengths of austerity to ensure sure Greece’s place in the Euro, whereas on the contrary, another section of people have backed the leftist SYRIZA party who have been averse to the idea of a bailout. The former ideology seems to have sufficed.

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.

 

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