Greece dissolves parliament for election

Greece's parliament has been dissolved ahead of an early election, as international creditors fear a potential Greek exit from the eurozone.

A Greek flag outside the Stock Exchange in Athens

(AAP) Source: AP

Greece's parliament has been dissolved ahead of an early election which will be watched warily by markets and international creditors concerned that the austerity-weary country could start unwinding unpopular fiscal reforms.

A statement from the chamber said the election would be held on January 25 - as announced on Monday by Prime Minister Antonis Samaras - and the new parliament would reconvene on February 5.

Samaras had warned on Tuesday that the financially-stricken nation may be forced out of the eurozone if the election is won by radical leftist party Syriza which has vowed to reverse years of austerity imposed in return for financial aid.

"This struggle will determine whether Greece stays in Europe," Samaras told President Karolos Papoulias.

On Wednesday, Samaras warned again that Syriza planned "not to pay interest rates, and therefore to lead the country to a payment default and bankruptcy".

Fears of a potential Greek exit from the eurozone have already rattled markets and sparked concern throughout European Union capitals.

Greek stocks closed down almost four per cent when the election was announced on Monday, after losing a massive 11 per cent earlier in the day.

On Wednesday the bourse finished 1.23 per cent higher.

It was parliament's failure to choose a new president in three successive votes this month that triggered the snap poll.


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Source: AAP



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