Reuters reports that Greece's political leaders meet today, Wednesday to form a caretaker government to take it to a second election in just over a month, with its euro membership at stake and its president speaking of "fear that could develop into panic" at its banks.
President Karolos Papoulias was forced to call a new vote after failing to cobble together a coalition government. An election on May 6 saw leftist opponents of Greece's EU/IMF bailout deprive the parties that ran the country for generations of a majority. Polls suggest the radical left are poised to win the re-run.
That prospect has shaken faith in Greece's ability to remain in the single currency and stay solvent, sending the euro and European shares lower, and raising the bond yields that reflect the risk that other European countries will be hurt.
Greeks are withdrawing euros from banks, apparently afraid of the prospect of rapid devaluation if the country leaves the European single currency, minutes of Papoulias's negotiations with political leaders showed.
EU-Digest
No comments:
Post a Comment