Greece’s center left Pasok Party has three days to form a coalition government or Greeks will return to the polls for new elections in June. Pasok’s opportunity comes after failed attempts to form coalitions by the conservative New Democracy Party and left wing Syriza Party. Analysts believe an agreement is unlikely due to the Syriza party’s strong opposition to austerity measures supported by both New Democracy and Pasok.
Pasok finished third in last Sunday’s elections which produced political gridlock and brought the previously marginal Syriza into prominence. Evangelos Venizelos, Pasok’s leader acknowledged the uphill battle he faces in forming a government but suggested that it was important to continue talks between the parties. “It was clear that in the current stage of this process we cannot reach a solution but that we must continue this effort,” he told reporters after leaving a meeting with Syriza leader Alexis Tsipras. He added that “the vast majority of the country wishes to remain in the euro, an exit from the euro would result in mass poverty.” He also predicted a loss of real estate value and overall income if Greece were to exit the euro zone.
Governing in coalition, New Democracy and Pasok have implemented a series of EU/IMF bailout packages that have meant severe budget cuts for the country. The steep reductions in pensions, salaries and public sector jobs have angered the public as unemployment as a whole has remained above twenty percent.
Long considered the two natural parties of Greek governance, New Democracy and Pasok paid a heavy price at the polls for their joint commitment to austerity. 2009 both parties vote totals combined at over 70% of the vote. In last Sunday’s elections that number fell to 32%. Both party leaders, Mr. Venizelos and Antonis Samaras, the head of New Democracy have maintained that the polices are harsh but necessary for the long term economic health of Greece.
Mr. Tsipras, for his part has called the austerity policies “barbaric” and has maintained that he will not enter any government that is not committed to reversing cuts.
