Today’s final round of voting in the Greek parliament has triggered a risk-off mentality in traders, after confirmation that Greece will have to hold elections in the early part of 2015. As a result Greek markets have sold off by over 10%. Greek prime minister Antonis Samaras had been hoping to secure at least 180 out of the 300 votes on offer for his candidate.
Although this is a specific issue for Greece, it will raise fresh fears over the fate of the eurozone and the timelines for the possible implementation of a European version of quantitative easing. An escalation in the debate over austerity could arise in 2015, with the same old north-south divide on what is proportional still raging.