News / Europe

Greek Political Deadlock Fans Eurozone Worries

Greek Political Deadlock Fans Eurozone Worriesi
|| 0:00:00
X
Mil Arcega
May 14, 2012 10:55 PM
World stocks fell sharply Monday as traders voiced new concerns about political uncertainty in Greece. Analysts say failure by the country's politicians to form a coalition government could lead to new elections. And as Mil Arcega reports, the growing uncertainty is stoking fears that Greece could become the first country to drop out of the 17-nation eurozone.

Greek Political Deadlock Fans Eurozone Worries

World stocks fell sharply Monday as traders voiced new concerns about political uncertainty in Greece.  Analysts say failure by the country's politicians to form a coalition government could lead to new elections.  And the growing uncertainty is stoking fears that Greece could become the first country to drop out of the 17-nation eurozone.

Greek newspapers warn of an uncertain future.  "Drama" says one headline; another adds: a "Country On The Edge of a Cliff".  With coalition talks by the nation's political leaders going nowhere - market analyst Theodore Krintas says Greece is like a rudderless ship.

"We see that the European as well as the Greek markets are afraid that the political instability that just started last week is going to last for another month," Krintas said.

The political problems in Greece are magnified by shrinking economies in Europe and a change of leadership in France.

Robert Halver is head of market research at Germany's Baader Bank

"It's all politics right now and the German equities are suffering because we have no clear picture considering Greek policy, a French policy, a European policy," he said.

Recent opinion surveys show Alexis Tsipras, the leader of Greece's radical leftist party, would come out on top if new elections were held next month. His party wants to remain in the eurozone but opposes the terms of an EU bailout.

Market consultant Nick Beecroft calls that an unrealistic position.

"There's a real danger in the next six months we see a number of misjudgments on the part of the Greek populace, led, I would say astray, by Tsipras' suggestion that Greece can renege on the austerity program and stay in the eurozone," Beecroft said.

European policy expert George Tzogopoulos says such a move could lead to the return to the Greek drachma (former Greek currency), with potentially disastrous consequences.

"Political chaos and social instability will follow.  Small business and enterprise will become immediately bankrupted.  And the new Greek currency will be devaluated," Tzogopoulos said.

Another potentially divisive election in June could make a second bailout for Greece less likely.

European leaders meeting in Brussels had a stern message for Greece: stick with the program or face an uncertain future outside the eurozone.

You May Like

US Imposes Sanctions on Alleged Honduran Drug Gang

Treasury department alleges Los Valles group is responsible for smuggling tens of thousands of kilograms of cocaine into US each month More

At 91, Marvel Creator Stan Lee Continues to Expand his Universe

Company's chief emeritus hopes to interest new generation of children in superheroes of all shapes and sizes by publishing content across multiple media platforms More

Photogallery New Drug Protects Against Virus in Ebola Family

Study by researchers at University of Texas Medical Branch, Tekmira Pharmaceuticals is first looking at drug's effectiveness after onset of symptoms More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
African Media Tries to Educate Public About Ebolai
X
George Putic
August 20, 2014 8:57 PM
While the Ebola epidemic continues to claim lives in West Africa, information technology specialists, together with radio and TV reporters, are battling misinformation and prejudice about the disease - using social media to educate the public about the deadly virus. VOA’s George Putic has more.
Video

Video African Media Tries to Educate Public About Ebola

While the Ebola epidemic continues to claim lives in West Africa, information technology specialists, together with radio and TV reporters, are battling misinformation and prejudice about the disease - using social media to educate the public about the deadly virus. VOA’s George Putic has more.
Video

Video Ferguson Calls For Justice as Anger, Violence Grips Community

Violence, anger and frustration continue to grip the small St. Louis suburb of Ferguson, Missouri. Protests broke out after a white police officer fatally shot an unarmed black teenager on August 9. The case has sparked outrage around the nation and prompted the White House to send U.S. Attorney Eric Holder to the small community of just over 20,000 people. VOA’s Mary Alice Salinas has more from Ferguson.
Video

Video Beheading Of US Journalist Breeds Outrage

U.S. and British authorities have launched an investigation into an Islamic State video showing the beheading of kidnapped American journalist James Foley by a militant with a British accent. The extremist group, which posted the video on the Internet Tuesday, said the murder was revenge for U.S. airstrikes on militant positions in Iraq - and has threatened to execute another American journalist it is holding. Henry Ridgwell has more from London.
Video

Video Family Robots - The Next Big Thing?

Robots that can help us with daily chores like cooking and cleaning are a long way off, but automatons that serve as family companions may be much closer. Researchers in the United States, France, Japan and other countries are racing to build robots that can entertain and perform some simpler tasks for us. VOA’s George Putic reports.
Video

Video In Ukraine, Fear and Distrust Remain Where Fighting has Stopped

As the Ukrainian military reclaims control of eastern cities from pro-Russian separatists, residents are getting a chance to rebuild their lives. VOA's Gabe Joselow reports from the town of Kramatorsk in Donetsk province, where a sense of fear is still in the air, and distrust of the government in Kyiv still runs deep.
Video

Video Five Patients Given Experimental Ebola Drug Said to Be Improving

The World Health Organization has approved the use of experimental treatments for Ebola patients in West Africa. The Ebola outbreak there is unprecedented, the disease deadly. The number of people who have died from Ebola has surpassed 1,200. VOA's Carol Pearson reports on the ethical considerations of allowing experimental drugs to be used.
Video

Video China Targets Overseas Assets of Corrupt Officials

As China presses forward with its anti-graft effort, authorities are targeting corrupt officials who have sent family members and assets overseas. The efforts have stirred up a debate at home on exactly how many officials take that route and how likely it is they will be caught. Rebecca Valli has this report.
Video

Video Leading The Fight Against Islamic State, Kurds Question Iraqi Future

Western countries including the United States have begun arming the Kurdish Peshmerga forces in northern Iraq to aid their battle against extremist Sunni militants from the Islamic State. But there are concerns that a heavily-armed Kurdistan Regional Government, or KRG, might seek to declare independence and cause the break-up of the Iraqi state. As Henry Ridgwell reports from London, the KRG says it will only seek greater autonomy from Baghdad.
Video

Video In Rural Kenya, Pressure Builds Against Female Circumcision

In some Kenyan communities, female genital mutilation remains a rite of passage. But activists are pushing back, with education for girls and with threats of punishment those who perform the circumcision. Mohammed Yusuf looks at the practice in the rural eastern community of Tharaka-Nithi.

AppleAndroid