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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.