Greece’s stock market dropped by 11.3 percent on Monday forcing the government to call for early elections as investors worry that the main opposition party may win in national level.
The national elections now are to be held on January 25 and as of now the parliament has failed to elect a new president in the country.
It is believed by the investors the left-wing opposition Syriza party may act on the resentment for six years of government austerity. They fear the opposition may also seek to drastically overhaul the international bailout deal.
Not to forget the financial turmoil of Greece in 2010-11 that may have shaken global economy too apart from breaking up the currency union in the wake of eurozone crisis. The present risk is not so great but the bailout creditors such as the International Monetary Fund and some other European countries may be a threat to the government.
It is a known fact that Greece even now is unable to finance itself of its own on bond markets. Its bailout loans are almost at the end. In such situation if a new government seek changes to the deal, credit access would be delayed. Amid all these, the country may face danger of a default and this may hurt the finances of other European countries.
According to Conservative Prime Minister Antonis Samaras, the elections will be held at the soonest possible date as the country has no time to waste now amid coming very near to the final exit from crisis.
