After nine days of talks on Tuesday political leaders in Greece admitted defeat in
a bid to form a governing coalition. This political uncertainly has sent shock waves
across Europe with key leaders fearing that the country could be forced out of the
euro. One of those who has raised the possibility that Greece could leave the Eurozone
is the head of the International Monetary Fund, Christine Lagarde
But in an
interview with France 24 she also made it clear that such a move could pose serious
risks to the region's financial stability.
The re-run election could provide
parties who oppose current austerity measures with more seats - and hasten the country's
exit from the eurozone.
Lagarde says the consequences would be unpredictable...
can think of clear financial turmoil and as a result, you know, you have consequences
on growth, you have consequences on trade, you have consequences on the financial
markets. So as I said it’s a multi faceted chain of consequences that are difficult
to assess from a financial point of view. Certainly assume it would be, it would be
No date has been set for the elections but they will have to
be held by mid-June.
June is the month in which Greece must make more spending
cuts to ensure it meets the terms of its international bailout.
government will be appointed until then. Listen