Tweet
New Democracy in Greece?
The two top contenders in an election crucial for Greece, Europe and the world were in a dead heat Sunday, though at the time of going to Press, exit polls showed that pro-bailout New Democracy Party narrowly won but without an outright majority.
Greek voters were apparently polarised over the harsh austerity measures demanded by international bailouts.
A joint exit poll by five pollsters, published as voting closed on Sunday, showed New Democracy taking between 27.5 per cent and 30.5 per cent of the vote. Syriza was essentially level with 27-30 per cent, followed by the PASOK Socialists taking 10-12 per cent of the vote.
As central banks stood ready to intervene in case of financial turmoil, Greece held its second national election in just six weeks to try to select a new Government after an inconclusive ballot on May 6. The outcome of Sunday's vote could determine whether Greece is forced to leave the joint euro currency, a move that could drag down other European countries and have potentially catastrophic consequences for the global economy.
Neither party will have enough seats in the 300-member Parliament to form a government, meaning talks on forming a coalition government will almost certainly begin Monday.
The two parties vying to win have starkly different views about what to do about the €240 billion ($300 billion) in bailout loans that Greece has been given by international lenders.
Syriza head Alexis Tsipras, a 37-year-old former student activist, has vowed to cancel the terms of Greece's international bailout deal and repeal its austerity measures - a move many think will force Greece to leave the 17-nation eurozone.
New Democracy leader Antonis Samaras says his top priority is to stay in the euro but has promised to renegotiate some terms of the bailout.
Whichever party comes first in Sunday's vote gets a bonus of 50 seats in Parliament. Greece has been dependent on rescue loans since May 2010, after sky-high borrowing rates left it locked out of the international markets following years of profligate spending and falsifying financial data. The spending cuts made in return have left the country mired in a fifth year of recession, with unemployment spiraling to above 22 per cent and tens of thousands of businesses shutting down.
There are no rules, however, governing a country's exit from the eurozone, and a Greek exit could spark a panic that other debt-strapped European nations — Portugal, Ireland, Spain and Italy — might also have to leave.
That domino scenario - known in economic terms as contagion - could engulf the euro, causing a global financial panic not unlike the one that gripped the world in 2008 after the investment firm Lehman Brothers failed in the US.
The vote also came after a difficult week for Spain and Italy, which saw their borrowing costs soar. Tens of thousands of Italian workers rallied Saturday in Rome to protest pension cuts, tax hikes and labour reforms.
The two top contenders in an election crucial for Greece, Europe and the world were in a dead heat Sunday, though at the time of going to Press, exit polls showed that pro-bailout New Democracy Party narrowly won but without an outright majority.
Greek voters were apparently polarised over the harsh austerity measures demanded by international bailouts.
A joint exit poll by five pollsters, published as voting closed on Sunday, showed New Democracy taking between 27.5 per cent and 30.5 per cent of the vote. Syriza was essentially level with 27-30 per cent, followed by the PASOK Socialists taking 10-12 per cent of the vote.
As central banks stood ready to intervene in case of financial turmoil, Greece held its second national election in just six weeks to try to select a new Government after an inconclusive ballot on May 6. The outcome of Sunday's vote could determine whether Greece is forced to leave the joint euro currency, a move that could drag down other European countries and have potentially catastrophic consequences for the global economy.
Neither party will have enough seats in the 300-member Parliament to form a government, meaning talks on forming a coalition government will almost certainly begin Monday.
The two parties vying to win have starkly different views about what to do about the €240 billion ($300 billion) in bailout loans that Greece has been given by international lenders.
Syriza head Alexis Tsipras, a 37-year-old former student activist, has vowed to cancel the terms of Greece's international bailout deal and repeal its austerity measures - a move many think will force Greece to leave the 17-nation eurozone.
New Democracy leader Antonis Samaras says his top priority is to stay in the euro but has promised to renegotiate some terms of the bailout.
Whichever party comes first in Sunday's vote gets a bonus of 50 seats in Parliament. Greece has been dependent on rescue loans since May 2010, after sky-high borrowing rates left it locked out of the international markets following years of profligate spending and falsifying financial data. The spending cuts made in return have left the country mired in a fifth year of recession, with unemployment spiraling to above 22 per cent and tens of thousands of businesses shutting down.
There are no rules, however, governing a country's exit from the eurozone, and a Greek exit could spark a panic that other debt-strapped European nations — Portugal, Ireland, Spain and Italy — might also have to leave.
That domino scenario - known in economic terms as contagion - could engulf the euro, causing a global financial panic not unlike the one that gripped the world in 2008 after the investment firm Lehman Brothers failed in the US.
The vote also came after a difficult week for Spain and Italy, which saw their borrowing costs soar. Tens of thousands of Italian workers rallied Saturday in Rome to protest pension cuts, tax hikes and labour reforms.
