The first victims of the elections (Greek) [View all]

[FarCenter]

The outcome of the Greek general elections based on exit polls and early voting returns showed on Sunday night that the country was entering a period of political uncertainty amid the worst economic crisis in the last several decades.

The heightened political risk will most likely compound the country risk and have detrimental effects on economic prospects unless a stable government is formed, but this does not look likely to be the baseline scenario.

Early projections showed the two main pillars of the Greek political system, namely conservative New Democracy and socialist PASOK, which approved the second European Union-International Monetary Fund bailout package, were falling short of the minimum 151 seats needed to govern in the 300-seat Parliament.

Both parties -- and especially PASOK -- paid a big price for approving economic austerity policies in return for EU-IMF loans to keep the country in the eurozone, but this should come as no surprise. This is largely so because they both failed to communicate to the masses that Greece’s position in the euro area was at stake by not sticking to the terms of the bailout.
http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_06/05/2012_440889