Greece set for fresh polls as coalition talks fail
16 May 2012
Greece, the debt-straddled eurozone nation, is set for new election as rival political parties failed to compromise on forming a coalition government Tuesday, a setback for the nine-day long efforts by the nation's president Karolos Papoulias.
A caretaker government will now be formed and the election date is expected to be announced by Friday or Saturday, probably for mid-June.
The failure to end the deadlock sent jitters across the global financial markets. The euro fell to $1.2732, its lowest in four months while the 10-year Spanish and Italian bond yields climbed above the crucial 6-per cent mark.
German bunds, on the contrary, were flat to its record low of 1.435 per cent as investors rushed to find a safe haven amid looming Greek debt default and its possible exit from the eurozone.
The stock markets across the globe continued their south-ward dive on Tuesday, after reporting heavy losses on Monday. (See: Global stocks plunge over possible Greece exit from eurozone)
The German stock index DAX dropped 0.8 per cent, while France's CAC40 ended 0.6 per cent down and the benchmark eurozone index Stoxx 50 slumped over 1 per cent. London's FTSE100 also fell by 0.5 per cent.
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