The state-run Athens News Agency reports that a new round of Greek elections will be held on June 17, according to a Bloomberg headline.Investors had predicted that elections would either take place on the 10th or the 17th, in time for important votes on new austerity measures the country agreed to as part of its second bailout.
Greeks voted in record numbers for parties that wanted to renegotiate the terms of this bailout agreement, ultimately electing a fractious parliament that could not create a coalition.
Since then, EU leaders have made clear that refusal to pass the economic reforms stipulated by the agreement would jeopardize the disbursement of international aid.
Without international aid and access to the markets, Greece would once again become insolvent in short order. A second default on its debts would incur heavy losses on the EU public sector, and such losses—in addition to the lack of aid—would force the country to leave the euro area.
While the anti-bailout SYRIZA party appears to be gaining support, the results of the election are anybody’s guess. Ultimately, the decision will rest on EU leaders ability to convince Greek voters that this is a vote for the euro and not for austerity, as analysts estimate that 70-80 per cent of Greeks say they would like their country to continue to be part of the eurozone.
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