While 70 million American dads celebrate Father’s Day with family barbecues and outings this Sunday, across the pond, Greece will be holding elections to determine the 300 members of its Hellenic Parliament.
If this sounds like déjà vu to you, you’re not alone. The last round of elections happened just over a month ago, but because the newly-elected Parliament was unable to form a coalition government, Greeks need to go back to the polls.
The results of these elections will impact whether the Mediterranean country will stick with the Euro and even whether it will remain in the European Union. Greece is currently at risk of going belly up if European central bankers and the International Monetary Fund decide to stop extending international bailout loans to the troubled nation if Greece refuses to meet necessary austerity measures.
Currently, the center-right New Democracy party has the most seats (19%), but come Sunday the radical-left Syriza Unionist Social Front could easily take the lead. The Syriza party is known for being against austerity cuts and opting to remain with the Euro.
At this point, no particular party is expected to lock in the majority of the seats, so they will likely need to form a coalition government immediately. If these parties fail to do so again, it could cause further unease in the area among debt holders and investors. The silver lining is that European Central Bank President Mario Draghi has pledged to keep the ECB on standby to keep banks flush with liquidity if Sunday’s Greek elections create fresh financial market turmoil.
Whichever way it swings, I will keep a close watch on how the elections pan out. Take a look at the developments in Monday’s blog post.
In the meantime, happy early Father’s Day!