Greek markets sink as snap election called

Greece continues to slide back toward the precipice after its prime minister failed to push through his nomination for president yesterday, triggering a snap election. 

The Mediterranean nation’s stockmarket has fallen 21.3 per cent since 8 December as the markets worried about a potential snap election. 

That election has now been called for 25 January after prime minister Antonis Samaras failed his final bid to put Stavros Dimas in the president’s chair.

It is possible that will usher in a regime change, with left-leaning radicals Syriza polling high. Meanwhile, time ticks down on the country’s two-month bailout extension with the government unable to make the required reforms to receive the next installment of foreign aid money.

Syriza has said it would write off most of the country’s debts to foreign lenders and renegotiate its bailout.

European Union commissioner for economic and financial affairs Pierre Moscovici has said ducking its debts would be “suicidal” for Greece.

Greek sovereign bond yields have leapt from 7.25 per cent on 8 December to 9.47 per cent today.