Greece: New Elections And Bank Run

…As German news magazine ‘Der Spiegel’ reports, the inevitable has happened and Greece is forced to hold another round of elections in June after the president failed in his last ditch attempt to forge a coalition government.


“It was the final act in the tragedy surrounding the attempts to form a Greek government — and it had a dramatic ending. Greece will hold a new election in June after politicians failed to form a government on Tuesday, nine days after a vote that produced a stalemate.

Athens now faces at least another month of political uncertainty that threatens to push Greece closer to bankruptcy and an exit from the euro.

After a third day of failed talks with political leaders, a spokesman for President Karolos Papoulias said the process of seeking a compromise had failed and a new vote must be held. Elections rules suggest it will be in mid-June, possibly June 17. A caretaker government is to be formed on Wednesday to lead the country until the new vote can be held.” 

We won’t reiterate the litany of possible problems this will bring, but very likely the widely expected failure to form a coalition government has played a role in the massive withdrawals from banks on Monday…


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