2717View
2m 29sLenght
16Rating

Greece will be the focus of world attention as Parliamentary elections are held on Sunday that have the potential to determine the future of the European currency, further unsettle international markets and even spark a new global financial crisis and recession. The outcome of the election will be a defining moment in Europe's debt crisis. It will decide whether Greece gets a government that can strike a deal with the European Union and International Monetary Fund on easing the terms of its bailout deal. International lenders will have to decide how far they are prepared to go to in helping Greece. So far, Europe's strongest economy and biggest lender, Germany, has said that Greece must stick to the austerity measures it agreed to. The worst-case scenario is that if no agreement is reached, Greece may not get the bailout money it so desperately needs to stay afloat. If it defaults on its debts, many analysts believe Greece will have no choice but to leave the euro currency. Such an outcome would be uncharted territory. There are no provisions in European law for a country to leave the currency, and no one really knows exactly what would happen. Capital controls, like freezing bank accounts and sealing the county's international borders, might be implemented, because many Greeks would likely withdraw their euros before bank holdings are changed into a new currency that will immediately lose value, and even try to move their money outside Greece. The social cost could be devastating. The country could struggle to finance the import of basic necessities, such as food, energy and medicine. For more on this story: http://abcnews.go.com/blogs/headlines/2012/06/world-economy-may-hang-on-greek-election/