Greece has avoided imminent bankruptcy after its international creditors finally agreed to give it the money it urgently needs, but the cash-strapped country's economic distress is likely to drag on for years to come.
Parties supporting Greece's financial-bailout package seized victory Sunday in parliamentary elections that had been widely seen as crucial to the country's — and the eurozone's — future, as well as the well-being of the global economy.
Euphoria over a lifeline of up to €100 billion ($125 billion) to rescue Spain's hurting banks morphed into a financial markets rout in a matter of hours Monday, as investors digested the still-undefined plan and became concerned the country may be unable to repay the new loans.
Critical last-ditch talks to form a coalition government in crisis-struck Greece foundered once more Sunday, leading the country one step closer to new elections, although the socialist party leader said he retained 'existing but limited' optimism for a deal.
Greece's president will meet with political party leaders Sunday in a last-ditch effort to broker a deal for a coalition government and avoid another general election.
Greece's commitment to austerity is no longer valid because voters have rejected those deals, a left-wing party leader declared Tuesday as he tried to form a new coalition government.
Fringe political parties made major gains and won seats in parliament for the first time as voters shunned the two ruling parties held responsible for Greece's dire economic situation.
