Image credit: Skai.gr
After nine days of negotiations the Greek parties that were elected in the last parliament failed to form a government. National elections will take place again in mid-June. Given the overall situation, political instability only exacerbates the already chilling effects of the economic depression. The formation of a government –any government– is essential in the immediate future, otherwise Greece runs the great risk of being plunged into chaos and anarchy, as the bailout programme will be brought to an abrupt end, cutting off the financing of the state’s primary deficits such as wages, pensions and other essential expenses; Greece will be forced out of the eurozone by means of severing it from the TARGET2 payment mechanism (also see the Financial Times article on Greek banks); while the extremist elements from both sides of the political spectrum will only find more fertile ground for their propaganda.
In a previous article […]