Potential three-party coalition emerges in Greece..Europe stocks mixed


New Democracy, PASOK and Democratic Left are poised to agree on the formation of coalition government Tuesday after holding “constructive” talks yesterday. Anti-bailout SYRIZA and Independent Greeks have rejected the chance to join the administration.

Conservative chief Antonis Samaras met with the leaders of all the potential coalition partners after receiving the mandate to form a government from President Karolos Papoulias.

Samaras’s overtures were turned down by SYRIZA’s Alexis Tsipras and Panos Kammenos of Independent Greeks but PASOK’s Evangelos Venizelos and Fotis Kouvelis of Democratic Left suggested that there was enough common ground to form an alliance.

Kathimerini understands that PASOK will seek an active role in the administration and could put forward several of its officials for ministerial roles. Also, Venizelos is not opposed to the idea of Samaras leading the new government as prime minister. Samaras, meanwhile, has suggested that 30 percent of the Cabinet should comprise non-political figures.

Venizelos insisted that SYRIZA should be brought into the coalition talks. He proposed a discussion between ND, PASOK, SYRIZA and Democratic Left to be hosted Tuesday by Papoulias.

“We agreed that the country must have a government immediately. Ideally we should have a government by tomorrow night,” Venizelos said. The ideal scenario, he said, would be “a government of shared responsibility involving four parties.”

Venizelos said the focus should shift to finding “as broad a coalition as possible.” He described the stance of SYRIZA as “anti-democratic and threatening.” He accused Tsipras of “trying to create the conditions for the failure of the government, the failure of the country.”

Tsipras ruled out the possibility of his party entering a coalition after talks with Samaras and called on the conservative leader to honor his pledge to renegotiate Greece’s debt deal with foreign creditors.

“I didn’t hear from his lips yesterday any reference to renegotiation; I only heard vows to honor commitments, to honor signatures,” Tsipras said, referring to Samaras’s speech on Sunday. He said he told Samaras that further cuts to salaries and pensions would be “catastrophic” for the country.


EUROPEAN stocks were mixed on overnight and Spanish bond rates hit a record high despite a Greek vote result welcomed by investors, who were nonetheless turning their attention to a key G20 summit.

Asian markets surged on the receding risk of a Greek eurozone exit after parties that accepted austerity measures came out on top in a legislative poll.

But the global rally lost steam, especially in southern European trading as investors worried about whether Spain and Italy would avoid bailouts that could stretch the currency union to the breaking point.

“For the second week in succession, euphoria over apparent progress in the eurozone has lasted for only a few hours,” noted Chris Beauchamp, a market analyst at IG Index trading group.

“In summary, we are really no further along than last Friday, and markets have reflected this; last week’s relief rally lasted barely a day, this one has been even briefer.


as i keep saying..the markets now react to no bad news..not good news..thats why its always temporary..spain is in a lot more trouble than greece..and they say 7% is now accpetable for spains yields but 8% wouldnt be..just lifting the bar..this greece thing is nowhere from being over either..


~ by seeker401 on June 19, 2012.

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