The current situation in the Euro Zone is said to be the worst and it had started in February 2010. Every Investor is nervous about the situation and there are summits held to get the best possible output for it. In Europe the country which has been worst affected is Greece. Greece is losing its political stability and the elected government is on the verge of losing majority. The defection is increasing and there is no sign that by Friday one can expect a yes vote. The Greek Prime Minister George Papandreou has called for a referendum but it has come as a complete shock for the ministers in Paris, Berlin and also for the people in the markets.
According to the reports coming from the Greek Press their finance minister also didn’t know about the referendum. There are chances that the Prime Minister is trying to scare his deputes to back the vote of confidence and not risk a referendum. As if the referendum is lost then the government will come down.
The bad news is that the exit polls predict a hung parliament if the general elections are held then one needs to see that whether the new democrats secure a plurality that could help form the new stable government. Getting stability in the political situation of Greece is very important for Europe and all the leaders need to sit together and come out with a proper solution. This would help in reducing the stress in the markets.
Bell The Bull says: The political situation in Greece important factor for European markets