Greece could leave the Euro over Austerity measures which would chop down Greek government saleries and benefits. The alternative to not accepting EU and IMF demands is to leave the Euro and have a dramatically reduced Drachma (the previous currency).
IMF head Christine Lagarde warned that the IMF had no intention for softening terms for Greek bailouts. Greek elections are to take place in mid-June which will be pivital to what type of government and path Greece will go down; a path that is either pro-Austerity or anti-Austerity and anti-Euro.
In France Anti-Austerity Hollande (a Socialist) has already won the heart of the French.
George Papandreou (former Prime Minister of Greece), was forced to resign six months ago after protests, strikes and riots against pay cuts, tax hikes, and slashed pensions demanded by international lenders in return for $325 billion in two bailouts.
While the political change caused some temporary euphoria the problem is hardly solved.
New elections for Greece are set for June 17, 2012 and is tied between the SYRIZA (who are against the austerity, led by Alexis Tsipras) and the PASOK (led by Evangelos Venizelos).
On 18 March 2012, Evangelos Venizelos (new PASOK leader) was elected unopposed to replace George Papandreou as PASOK president and led the party in the May 2012 general election.
7 countries are officially in a recession in the Euro-zone. Only Germany showed growth in the 1st quarter. Meanwhile the European Union seems to be more divided rather than in agreement on issues; specifically what to do about the sovereign debt crisis, and Greece is the weakest link that could soon snap under the face of drastic austerity measures. Anything could happen!
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Neal Vanderstelt - Currency Analyst
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