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Greece sets vote for Jan 25

By Agencies in Athens and Berlin | China Daily | Updated: 2014-12-30 07:44

Nation's financial future in doubt as parliament fails to elect president

Greek Prime Minister Antonis Samaras said the country will hold early national elections on Jan 25, after lawmakers failed to elect a new president in the third and final round of voting.

The prospect of early elections has intensified fears over the country's financial future, causing investors to sell off the country's stocks.

Greek stocks plunged 11 percent after the vote, on fears that the anti-austerity leftist Syriza party could undo many of Greece's economic reforms if it wins the election.

The coalition government's candidate for the presidential post, 73-year-old former European commissioner Stavros Dimas, garnered 168 votes out of parliament's 300 seats - short of the 180 votes needed to win.

Syriza leader Alexis Tsipras, a front-runner in opinion polls, said on Monday that early elections to be held next month would herald an end to austerity.

"With the will of our people, in a few days the bailout agreements of austerity will be history," Tsipras told reporters.

Syriza has pledged to roll back some of the reforms implemented in order for the country to qualify for billions of euros in rescue funds from other eurozone countries and the International Monetary Fund - although it has recently somewhat softened its rhetoric about unilaterally pulling out of the bailout deal.

Samaras had said an election could be "disastrous" while heavily indebted Greece is negotiating with its creditors.

Investors reacted badly to the vote, with the Athens stock exchange's benchmark general index down 10.8 percent in midday trading minutes after the vote.

Dimas said the vote still showed that a strong majority in parliament backed his candidacy.

"I think I expected the result. I remain calm, as ever," he said.

In recent days, European Commission President Jean-Claude Juncker and German Finance Minister Wolfgang Schaeuble warned the Greeks not to change course and abandon the reforms.

Opinion polls show Samaras' conservative New Democracy party trailing Syriza.

But Syriza's lead has narrowed in the polls, indicating the party would not have a clear majority to form a government on its own.

The German government said on Monday that it was watching events in Greece closely but declined specific comment on news that the country will hold an early national election next month.

AP - AFP

 

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