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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