Saturday, May 12, 2012

'Last Throw of the Dice' in Greece

Ekathimerini reports: "The last flickering hope for avoiding a second election in as many months in Greece depends on the meetings that President Karolos Papoulias will have on Sunday with all leaders of the seven parliamentary parties so as to have a coalition government formed." Read more.

If talks fail, fresh elections are expected to result in a government led by the Coalition of the Radical Left (SYRIZA) with one or two small coalition partners. SYRIZA is staunchly anti-austerity; but the party's leader, Alexis Tsipras, has said he also supports staying in the euro zone, arguing that when push comes to shove, the EU, led by Germany, will back down and agree to Greek demands for a modification of austerity measures while providing additional financial assistance. A big gamble.

Related: How Greece Could Leave the Euro Zone