Greece Pushes Eurozone Crisis Further

A spokesman for Greek President Karolos Papoulias announced May 15 that nine days of talks had failed to yield a political coalition in Athens. As a result, Greece will hold new parliamentary elections by mid-June. The Coalition of the Radical Left (shortened in Greek to Syriza), a coalition of leftist parties that gained popularity for its rejection of austerity and finished second in the May 6 elections, could emerge as the leader of the next Greek government.

Using the fear of the consequences a Greek exit from the euro area could have on the rest of Europe, Syriza will seek concessions from the European Union on austerity. However, considering Greece's need for EU financial support and the widespread desire among Greeks to keep the euro, Syriza's maneuverability will be limited, and the political bloc will be forced to pursue a compromise with Brussels.