Greece ‘votes to stay on European path and in eurozone’

The New Democracy party came in first in Greece’s election yesterday and immediately proposed forming a pro-euro coalition government – a development that eased, at least briefly, deep fears that the vote would unleash an economic tsunami.

The election was seen as crucial for Europe and the world, since it could determine whether Greece was forced to leave the joint euro currency, a move that could have potentially catastrophic consequences for other ailing European nations and the global economy.

As central banks stood ready to intervene in case of financial turmoil, Greece held its second national election in six weeks after an inconclusive ballot on May 6.

With 37.4 per cent of the vote counted, official results showed the conservative New Democracy with 30.5 per cent of the vote, ahead of the radical anti-bailout Syriza party’s 26 per cent and the pro-bailout Socialist PASOK with 12.9 per cent.

Although official projections last night showed that no party will win enough seats in the 300-member parliament to form a government on its own, Greece’s two traditional parties – New Democracy and PASOK – would have enough seats to form a coalition together.

“The Greek people today voted for Greece to remain on its European path and in the eurozone,” New Democracy leader Antonis Samaras said, adding that voters chose “policies that will bring jobs, growth, justice and security”.

His party beat Syriza, which wanted to cancel Greece’s international bailouts. Syriza chief Alexis Tsipras has conceded the election.

Greece has been dependent on rescue loans since May 2010, after sky-high borrowing rates left it locked out of the international markets following years of profligate spending and falsifying financial data. The spending cuts made in return have left the country mired in a fifth year of recession, with unemployment spiralling to above 22 per cent.