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

Video China Investigates Powerful Former Security Chief

Analysts say move by President Xi is an effort to win more party support, take step toward economic reforms, removing those who would stand in way of change More

South Africa Land Reforms Still Contentious 20 Years Later

Activists argue that the pace of land reform is slow and biased; legal experts question how some proposed reforms would be implemented More

In Vietnam, Religious Freedoms Violated, UN Finds

Beliefs reportedly prompt heavy surveillance, intimidation and travel restrictions More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Gazans in Shelled School Sought Shelteri
X
Scott Bobb
July 30, 2014 8:16 PM
Israel's air and ground assault against Hamas-led fighters in Gaza has forced many Palestinians to flee their homes, seeking safety. But safe places are hard to find, as VOA’s Scott Bobb reports from Jabaliya.
Video

Video Gazans in Shelled School Sought Shelter

Israel's air and ground assault against Hamas-led fighters in Gaza has forced many Palestinians to flee their homes, seeking safety. But safe places are hard to find, as VOA’s Scott Bobb reports from Jabaliya.
Video

Video Rapid Spread of Ebola in West Africa Prompts Global Alert

Across West Africa, health officials are struggling to keep up with what the World Health Organization describes as the worst ebola outbreak on record. The virus has killed hundreds of people this year. U.S. President Barack Obama and other world leaders are watching the developments closely as they weigh what actions, if any, are needed to help contain the disease.
Video

Video Michelle Obama: Young Africans Need to Embrace Women's Rights

U.S. first lady Michelle Obama urged some of Africa's best and brightest to advocate for women's rights in their home countries. As VOA's Pam Dockins explains, Obama spoke to some 500 participants of the Young African Leaders Initiative, a six-week U.S.-based training and development program.
Video

Video Immigrant Influx on Texas Border Heats Up Political Debate

Immigrants from Central America continue to cross the U.S.-Mexico border in south Texas, seeking asylum in the United States, as officials grapple with ways to deal with the problem and provide shelter for thousands of minors among the illegal border crossers. As VOA's Greg Flakus reports from Houston, the issue is complicated by internal U.S. politics and U.S. relations with the troubled nations that immigrants are fleeing.
Video

Video Study: Latino Students Most Segregated in California

Even though legal school segregation ended in the United States 60 years ago, one study finds segregation still occurs in the U.S. based on income and race. The University of California Los Angeles Civil Rights Project finds that students in California are more segregated by race than ever before, especially Latinos. Elizabeth Lee reports for VOA from Los Angeles.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video A Summer Camp for All the World

VIDEO: During workshops and social gatherings, the Global Youth Village summer camp encourages young people to cooperate and embrace their differences, while learning to communicate with people from other countries. VOA's Deborah Block has more.
Video

Video From Cantankerous Warlock to Incorruptible Priest, 'Harry Potter' Actor Embraces Diverse Roles

He’s perhaps best known as Mad Eye Moody, the whimsical wizard in the Harry Potter franchise. But character actor Brendan Gleeson's resume includes dozens of films, and he embraces all the characters he inhabits with equal passion. In an interview with VOA’s Penelope Poulou, Gleeson discussed his new drama "Calvary" and his secret to success.

AppleAndroid