Greece Races to Form Coalition

With cash dwindling, pro-bailout party's election win could provide brief respite from crisis.

Greece’s two traditional political rivals are in a race to forge a coalition as the state’s cash dwindles, bank deposits flee and Europe demands renewed austerity pledges before releasing more emergency aid.

The euro erased an initial advance, stocks fell and borrowing costs in Spain and Italy surged on concern an election win by Greece’s biggest pro-bailout party would provide a brief respite from Europe’s financial crisis.

Coalition Majority

New Democracy won 129 seats in the 300-seat parliament, according to Interior Ministry projections with 99 percent of the vote counted. Pasok, which has alternated in power with New Democracy over the past four decades, won 33 seats, enough for the two of them to forge a coalition that backs the creditors’ austerity demands.

Rescuer Demands

 

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