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Greece vote backs austerity and euro

The results of the latest Greek elections have shown support for its continued membership of the eurozone, with pro-austerity party New Democracy winning by a narrow margin.

New Democracy will now attempt to form a coalition government. Leftist political party Syzira, which had been one of the most vociferous opponents of austerity measures, came second-placed.

The BBC reports New Democracy took 29.7% of the vote, winning 129 seats. The Syriza party came second with 26.9% of the vote and leader Alexis Tsipras has pledged to lead national opposition to pro-austerity measures.

The results have allayed fears of an imminent exit from the euro by Greece, with markets rising in early trading.

A joint statement by European Council and European Commission presidents – respectively – Herman Van Rompuy and José Manuel Barroso, welcomed the backing of the Greek people for the widely unpopular austerity measures.

Van Rompuy and Barroso hailed the “courage and resilience” of the Greek electorate, claiming that they would continue to stand by the Greece “asa member of the EU family and the euro area”.

In a joint statement they said: “We look forward to work with the new government and to support the continued efforts of Greece to put its economy on a sustainable path. The second economic adjustment programme agreed between Greece and the eurogroup is the basis upon which to build to foster growth, prosperity and jobs for the Greek people.”

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  • Michael White MD Boutique Capital 18th June 2012 at 1:44 pm

    Many influential economists believe the election result merely takes the Greeks out of the proverbial fire and puts them firmly back into a very hot frying pan!

    Quite frankly, I agree completely with this view and I might suggest we are now into the next waiting game of when, not if, the new government fails allowing Syriza back into the game again.