Monday, 18 June 2012

Greece pulls back from the brink again

Markets can breathe a little easier after the results of the Greek elections. Reuters reports:

Parties supporting a bailout saving Greece from bankruptcy won a slim parliamentary majority on Sunday, beating radical leftists who rejected austerity and bringing relief to the euro zone which was braced for fresh financial turmoil.

The election result looked likely to yield a coalition government led by conservative New Democracy but leaves an emboldened SYRIZA bloc to rally angry opposition in the streets to the punishing terms of the bailout.

Official results released by the interior ministry, with 97 percent of ballots counted, showed New Democracy taking 29.7 percent of the vote, with SYRIZA on 26.9. The PASOK Socialists were set to take 12.3 percent of the vote.

The election result buys time for Greece and Europe as a whole although the WSJ's MarketBeat says that markets are likely to remain volatile as nothing has fundamentally changed, nothing has been resolved, Greece will still eventually default, and the pain in Spain remains.

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