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

China Investigates Former Powerful Security Chief

Former security chief and member of Politburo Standing Committee, Zhou Yongkang, under investigation for suspected 'serious disciplinary violation' More

India, US Look to Reset Ties During Kerry Visit

This week's talks will be first high level interaction between two countries since Prime Minister Narendra Modi took charge More

Video Young African Leadership Program Renamed to Honor Mandela

YALI program, launched by President Obama in 2010, aims to build skills in business, entrepreneurship, public management and civic leadership More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Vietnamese Staging Chinese Product Boycott After Oil Rig Spati
X
Reasey Poch
July 28, 2014 7:18 PM
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 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 ESA Spacecraft to Land on a Comet

After a long flight through deep space, a European Space Agency probe is finally approaching its target -- a comet millions of kilometers away from earth. Scientists say the mission may lead to some startling discoveries about the origins of the water on earth. VOA’s George Putic has more.
Video

Video Young Africans Arrive in US for Leadership Program

President Barack Obama's Young African Leadership Initiative has brought hundreds of young Africans to the United States for a six-week program aimed at building their knowledge and skills in fields such as public administration and business. Out of the 50,000 young Africans who applied for the program, just one percent was accepted. VOA's Laurel Bowman caught up with some of those who made the cut and has this report.
Video

Video In Honduras, Amnesty Rumors Fuel US Migration Surges

False rumors in Central America are fueling the current surge of undocumented young people being apprehended at the U.S. border. The inaccurate claims suggest the U.S. will give amnesty to young migrants from the region. As VOA's Brian Padden reports from Honduras, these rumors trace back to President Obama's 2012 executive order to halt deportations for some young undocumented immigrants already living in the United States.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.

AppleAndroid