Fresh election in June
Following days of discussions with party leaders the Greek president, Karolos Papoulias, yesterday was unable to force any breakthrough and elections are almost certain to take place on either 10th or 17th June.
A fresh round of elections looks set to see Syriza, the left wing Eurosceptic party which is determined to renege on the bailout agreement, as the front runner in a future government.
Meanwhile the president was warned by the Central Bank governor that banks were becoming worried about the situation with more than €700 million having been withdrawn since the election. A run on Greek banks would affect the rest of the European Union, especially those banks with high exposure to Greece. It might also cause a run on banks in Portugal, Spain and Italy as wel as Ireland, all of whom are looking precarious as the Eurozone crisis stumbles on.
In Berlin both the new French president, François Hollande and his German counterpart, Chancellor Angela Markel, reiterated their support for Greece. Nevertheless the talk around Europe is of Greece leaving the Eurozone and possibly even the European Union and politicians are become less adamant in their support for Greece.