Greece to Hold Repeat Elections June 17

Posted May 16th, 2012 at 8:45 am (UTC-5)
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Greece has set June 17 as the date for the country's repeat elections, after major political parties failed to form a coalition government on Tuesday following several attempts to broker a deal.

The date was announced Wednesday after Greek President Karolos Papoulias met with party leaders to create a caretaker government. State television announced that senior judge Panagiotis Pikrammenos was named caretaker prime minister.

Analysts say the new elections, like those held earlier this month, are also likely to produce a hung parliament with no party securing enough votes to form a government. But a radical left coalition led by Alexis Tsipras, the Syriza party leader who fiercely opposes austerity measures, has gained enough support to have a major influence.

This could lead Greece on a collision course with the European Union, whose leaders have said the country will not get any more loans unless it adheres to the tough debt-reducing plan.

The Greek political impasse has rattled European markets and threatens to undermine the eurozone. The issue figured high in the first official talks between France's new president, Francois Hollande, and German Chancellor Angela Merkel. During the meeting Tuesday in Berlin, the two leaders said they support Greece staying in the currency union.

“We have to respect the fact that there are new elections in Greece. So I speak for myself and have made it clear that we want Greece to stay in the eurozone and want its citizens to vote for this. Part of doing this is that the agreements of the memorandum must be kept.”

The political stalemate in Greece has led to rising concerns among eurozone financial ministers that Athens will not uphold its commitments to comply with EU austerity measures and eventually will leave the 17-nation bloc that uses the euro currency.

Greece agreed to the measures in exchange for approval of the country's second financial bailout in the last two years.

The economic measures include deep spending cuts, tax hikes, pension cuts and eliminating thousands of government jobs. Greeks have taken to the streets in sometimes violent protests against the bailout requirements.