New Democracy Leader "Will Honour Commitments to the EU; Euro Trades Higher; Coalition Review

Sticking with quotes from the Guardian Live Election Blog, New Democracy leader Antonis Samaras "Will Honour Commitments to the EU".

Samaras summarised his speech in English:

His party would honour commitments to the EU.
It was a victory for all Europe.
A call for all political parties that share objectives to form government.
Sacrifices of Greek people will be reflected.
Determined to do what it takes and do it fast.

That message is not going to play well with Greek voters given his pledge to change conditions.


Coalition Depends On Pasok

At this point it is up to Pasok. Will that party form a coalition government or not?


Results look something like this:

New Democracy will receive 29.53% of the vote, equivalent to 128 seats.
Syriza will receive 27.12% – 72 seats.
Pasok will receive 12.2% – 23 seats.
Independent Greeks will receive 7.56% – 20 seats.
Golden Dawn will receive 6.95% – 18 seats.
Democratic Left will receive 6.23% – 17 seats.
Greek Communist Party will receive 4.47% – 12 seats.

Unless Pasok is willing to enter into a coalition government, there is no likely coalition with New Democracy.

Then it would be up to Syriza to form a coalition.

Otherwise, look forward to more elections.

Euro Trades Higher

Reuters reports Euro jumps broadly after Greek vote results

The euro hit a three-week high against the U.S. dollar after official Greek election projections showed parties committed to Greece's multi-billion-euro bailout were on course to secure a slim parliamentary majority.

The euro rose to around $1.2730 according to Reuters data in early Australasian Monday trade, from around $1.2655 late in New York on Friday. It hit its strongest since May 22 according to Reuters charts.

Addendum:

I had originally posted that the 50 bonus seats would go to Syriza  if New Democracy failed to form a coalition. Some pointed out that is not what happens. If so, then if New Democracy fails to form a coalition, then  no coalition is likely.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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