Following Greek President Carolos Papoulias's decision to nominate a judge as the head of the interim government, the chief of International Monetary Fund (IMF) until the upcoming election, Christine Lagarde, called on prominent Greek leaders to show their commitment to stay with the euro zone on Wednesday. She stressed on the importance of sticking to the bailout agreement – not just for Greece’s own financial and political security but also for the entire euro zone. She also pointed out the possible consequences of such exit – which would be “hard and expensive, and not just for Greece”. Greece is set for a repeat general election on June 17.
What is adding to the fear and speculation in Europe is the rising popularity of political parties in Greece who are against European Union-IMF bailout deal. In the event that an anti-bailout party comes to power following the election, there is a chance that the bail-out deal might come apart and Greece would exit from euro zone. There is also a fear of its cascading effect on other bigger but vulnerable economies in Europe, especially Spain and Italy.
Top EU officials have already warned Greece that complying with the terms of the bailout package is mandatory in order to receive international monetary aid.
What is adding to the fear and speculation in Europe is the rising popularity of political parties in Greece who are against European Union-IMF bailout deal. In the event that an anti-bailout party comes to power following the election, there is a chance that the bail-out deal might come apart and Greece would exit from euro zone. There is also a fear of its cascading effect on other bigger but vulnerable economies in Europe, especially Spain and Italy.
Top EU officials have already warned Greece that complying with the terms of the bailout package is mandatory in order to receive international monetary aid.
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