Sunday, 17 June 2012

Greek vote does not solve the euro problem

The result of the Greek general election may have bought Greece, Germany, and the EU time, but it does nothing to resolve the structural deficiencies of the eurozone.  It looks as though a coalition will have to be formed, but which parties will form it?  The neo-Nazi party gained almost 8% of the vote.  I fear civil unrest will grow unless there is significant relaxation of the austerity terms imposed on the nation.

What may be more significant is the result of the second round of voting for the French parliament.  The result gives Hollande's party a working majority. Much will depend on how France, Italy and Spain work together to counter Germany.


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