? Greece sets June elections

Stymied by sparring politicians, Greece sets June elections

5/15/2012 By Nikolia Apostolou, Special for USA TODAY

ATHENS – Greek leaders failed Tuesday to get sparring political parties to agree on a new government, forcing new elections in June and leaving in doubt whether the debt-ridden nation will impose punishing spending cuts on a populace that has said it will take no more.

"These last few days, I did whatever I could to form a government, but some didn't listen to me, and they are leading the country to new troubles," conservative New Democracy leader Antonis Samaras said.
New Democracy, which had ruled for the past 40 years along with socialist Pasok, was the biggest vote-getter in the May 6 elections. But both parties lost a significant amount of voters to several fringe parties that campaigned against budget cuts demanded by European Union finance ministers in return for bailout funds.
The radical left-wing Syriza coalition, which came in second in the elections, wants to renegotiate the so-called austerity measures
Greece agreed to in March, part of what is historically the costliest-ever financial rescue of an individual country.
"They weren't just asking for our agreement, but they were asking us to sign measures that would bring poverty," Syriza leader Alexis Tsipras said.
Since its strong election showing, Syriza's support among voters has grown as it continues to refuse to compromise on its opposition to the budget cuts. A new poll by a Greek newspaper put its popularity at 20% to 27%, up from the 17% it scored during the elections.
Meanwhile, the conservative New Democracy and socialist Pasok, the two parties that had ruled Greece for decades, are polling at 19.4% and 11.8%, respectively. If that holds, Syriza could win the June elections and pressure the countries of the eurozone (nations that use the euro as currency) to back off austerity measures and give Greece more time to reduce its debt.
"The situation in Greece right now is really hard," said Apostolis Benekos, 57, who works in machine sales in Athens. "I believe the fact that we're going to elections is the best thing, because then a party will win a clear mandate to form a strong government."
Political analysts say they aren't surprised at the situation.
"It's not that Greece became suddenly left," said Dimitris Charalambis, professor of political science at the University of Athens. "It's the consequences of the two bailout agreements, which brought not only economic, but also political catastrophe. We now have fascist, para-fascist and ultraleft groups in Parliament."
Greece is in its fifth year of an economic depression in which unemployment has soared to 21%. Spending cuts have reduced consumer income and demand and, thus, job growth, but Germany and other wealthier nations of the eurozone say they will no longer subsidize Greece's overspending.
"The majority of the Greek population, about 80%, want to stay in the eurozone," independent hedge fund manager Timos Melissaris said. "But (the May 6 vote) was a message to the two (ruling) parties that it's your fault that we're here."
Some Europeans led by Germany say Greek voters must decide whether they want to stick to the financial rules or leave the eurozone. German Chancellor Angela Merkel met with new French President Francois Hollande, a Socialist, on Tuesday and agreed to discuss ways to generate economic growth in Europe. Merkel did not back off her demand for Greek austerity measures.
"The Central Bankers and ministers — in Germany in particular, but not only — are now daring Greece to quit the euro," said Mats Persson, director of the London-based think tank, Open Europe. "They are setting up the stakes, saying if you chose to go down this road, you will have to leave. It's a game of chicken in sort of an extreme sense."