18 jun. 2012

Greece : Situation remains unstable

Pro-eurozone parties look to have gained more than 50% of the vote. While political leaders worldwide have been quick to congratulate New Democracy on its victory, in reality, the situation remains very unstable.
Negotiations to form a coalition, which Syriza has already said they will not be part of, will take a number of days. What emerges is likely to be a fragile government which will have to continue to implement unpopular austerity measures in the face of a strong opposition and a disillusioned population. On a wider, scale while the outcome of the election has removed one immediate threat to the euro it has done nothing to fix the underlying problems.

Source : Goodbody