Former Greek PM Says Country Can’t Afford Another Crisis

Despite fears that Greece is lurching back into crisis after its prime minister called a snap presidential election, the country’s former premier told CNBC the decision was a “wise move.”

“There is no other way to stability, we must have elections,” Costas Simitis, who was Greek Prime Minister from 1996 to 2004 leading the left-wing PASOK party, told CNBC.

Simitis’ comments come after Samaras, surprised investors by announcing a snap presidential vote late on Monday. The decision caused turmoil in Greece’s financial markets Tuesday, with the country’s main stock market plunging nearly 13 percent during the day – the worst loss since 1987 — while the yield on Greek 10-year government debt rose to 8.15 percent.

The role of the president has very little constitutional power but Samaras’ move is seen as a gamble because if his candidate does not win, an early general election could be called. At the moment, the anti-austerity, left-wing party Syriza could win, a victory that threatens the tough reform and spending cuts program that Greece was forced to adopt in return for 240 billion euros ($300 billion) in bailout loans.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza