Some relief after Greek vote, but uncertainty remains

2012-06-18 3

Headlines across Europe are abuzz with Greek elections, in which the centre-right New Democracy party claimed a narrow win.

The vote, which staved off the prospect of the debt-laden country leaving the euro zone, initially brought some relief to European markets.

Some in Italy, however, remain sceptical about how the election victory will help Europe's struggling economy.

(SOUNDBITE) (Italian) ROME RESIDENT, ROMANO CALOSSI, SAYING:

"I would have preferred that the representative of the left-wing had won. He seemed 'clean', not corrupt like the previous Greek governments who had brought the Greek people into this situation."

Others fear any bid by Greece's new government to revise the terms of its bailout will not come cheap.

In Brussels, a senior economist warns that the pro-bailout vote is not yet the end for the crisis.

(SOUNDBITE) (English) CARSTEN BRZESKI, SENIOR ECONOMIST AT ING, SAYING:

"We're going to stay in this area of uncertainty. The macro-economic developments, especially in the eurozone, look very dire. So we still expect that the eurozone will end up in a recession."

Despite the economic challenge, German relief at the election result may now win Athens more time to meet its fiscal targets to avert a catastrophic euro exit.

Sarah Sheffer, Reuters

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