- Antonis Samaras, Greece's Prime Minister
Greece's Prime Minister Antonis Samaras announced a snap general election next month following the third and final unsuccessful attempt to elect a president. Samaras failed to obtain the required number of lawmakers in Greece's parliament to support his nominee Stavros Dimas in a decisive vote in the presidential elections on Monday. Only 168 lawmakers backed Dimas, 12 votes short of the 180 needed. Early general elections will take place on January 25, triggering a potential crisis or even Greece's exit from the Euro bloc.
Opinion polls show that the leftist anti-austerity and anti-bailout party Syriza, led by Alexis Tsipras, is gaining more support of Greeks and is likely to win the national election. Syriza wants the Euro zone to write off a substantial part of Greece's debt, which is estimated to reach almost 178% of GDP this year, as well as cancel the terms of a bailout programme from the Troika. There are concerns within the European Union that a potential Syriza-led government could eventually result in Greece leaving the Euro area. The Euro zone officials have reiterated their concerns of opening Pandora's box in case one of Euro bloc's member states exits the union. If one weak country leaves the single currency area, this will trigger domino effect. Borrowing costs for those economies will soar, making it impossible for governments to finance themselves.
© Dukascopy Bank SA