This story that’s just breaking now via AP and Bloomberg is ominous for Europe…
The leader of the conservative party in Greece, which just took the plurality of votes in the Greek election, says he has given up on forming a coalition government.
Here’s how it worked: Antonis Samaras’ party New Democracy won the most seats in the election, but didn’t get enough to secure a majority.
So it was on him to form a new government by allying with various other parties, including, possibly, the other mainstream party: PASOK (which is socialist).
But he says that all attempted combinations have failed, and that the need to renegotiate the bailout is now agreed to by everyone.
This must be bad. Samaras technically had three days to form a government, and he’s given up after less than one day.
Now that Samaras has failed, it’s up to the far-left wing party to give it a shot. They’re not just in favor of renegotiating the bailout. They’re against austerity in total. We’ll see if they get it. If they fail, then it’s up to PASOK to give it a shot.
If nobody can form a government, then that means early elections very soon.
Electoral chaos is on!