After weeks of speculation, Greek voters appear to have backed the pro-bailout parties. Reuters reports that with 99% of the ballots counted, Antonis Samaras’s Conservative New Democracy had captured 29.7% of the vote. The anti-bailout left wing SYRIZA party stood in second place with 27%.
Although New Democracy had won the first round of elections; Samaras had been unable to form a coalition government due to a lack of commitment from Greece’s other parties. However, this time around the third place PASOK party appears to be committed to forming an inclusive coalition government.
Samaras will begin the task of forming a new government on Monday. And although the margin for error remains thin, it appears at this time that New Democracy will prevail in forming a coalition.
With the Greek government running out of cash, Samaras said there was no time to waste. Reports indicate that the debt ladened Greeks have only enough cash to last through July.
The Eurogroup issued a statement on the result of the Greek election, noting that the provisional results of Greek elections "should allow for the formation of a government the support of the electorate to bring Greece back on a path of sustainable growth" and "looks forward to the swift formation of a new Greek government that will take ownership of the adjustment programme to which Greece and the Eurogroup earlier this year committed themselves."
The statement went on to say, "The Eurogroup reiterates its commitment to assist Greece in its adjustment effort in order to address the many challenges the economy is facing."
Stock futures moved modestly higher on the news, however the gains were modest (S&P futures are up 5 points as of this writing). Traders will likely wait for official word out of Greece that a government has been formed before moving on.
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