Update: New Democracy Takes Election

L-R (clockwise): Lefkos Pirgos, Thessaloniki; a New Democracy rally on Friday; an elderly lady votes in Thessaloniki on June 17; a KKE rally on Friday; voters mingle outside a high school in Thessaloniki; Nikis Street after the polls close; a crowd gathers around Syriza's headquarters in Thessaloniki; ND rally in Athens; KKE (Communist) banner in Thessaloniki.

Alexis Tsipras of Syriza has conceded the Greek election. 

New Democracy, a traditional right-leaning party, is leading slightly with 29.76% of the vote. Antonis Samaras, New Democracy's current leader, will ostensibly leverage his past relationships with EU heavyweights (Angela Merkel, Mariano Rajoy, Jose Manuel Barroso) to steer Greece through the Straits of Uncertain Liquidity as a July 20th payment approaches. 

However, majority parliamentary rule -- at least 40.4% of the vote -- must be met through a coalition. New Democracy has offered to form such a coalition with "populist parties" who are pro-bailout. But Syriza is staunchly opposed to current measures, and it is unclear whether PASOK would also agree to a deal. New Democracy and PASOK forged the original bailout deal in 2009 in Brussels; a history of collaboration under extraordinary pressure may be the country's best chance to push through measures that will keep it in the eurozone. Latest count:

ΚΟΜΜΑ	ΠΟΣΟΣΤΟ	ΨΗΦΟΙ	ΔΙΑΦΟΡΑ ΜΑΗΣ '12
ΝΔ	29,66%	1.804.206	10,8%
ΣΥΡΙΖΑ	26,89%	1.635.765	10,1%
ΠΑΣΟΚ	12,30%	747.955	-0,9%
ΑΝΕΞΑΡΤ. ΕΛΛΗΝΕΣ	7,50%	456.491	-3,1%
ΧΡΥΣΗ ΑΥΓΗ	6,92%	421.181	-0,1%
ΔΗΜΑΡ	6,24%	379.736	0,1%
ΚΚΕ	4,51%	274.109	-4,0%

Η ΚΑΤΑΝΟΜΗ ΤΩΝ ΕΔΡΩΝ (Parliamentary Makeup)

Seats:

129 New Democracy

71 Syriza

33 Pasok

20 Independent Greeks

18 Golden Dawn

17 Democratic Left

12 Communist Party

Elections

Voters in Thessaloniki enter a high school to cast their ballots.

Last night, the streets of Thessaloniki were in an uproar as Greece took Russia in the quarterfinals for the Euro cup. Tomorrow, there may well be another uproar -- and a potential default if Greece cannot form a coalition government.

Tonight's votes are still being tabulated. As of now, Public Issue and Sky News are reporting that New Democracy and Syriza are in the lead. With 23.10% of the vote counted, it's: ΝΔ με 29,53% (New Democracy), ΣΥΡΙΖΑ 27,12%(Syriza), ΠΑΣΟΚ 12,25 (PASOK) Ανεξάρτητοι Έλληνες 7,38% Χρυσή Αυγή 6,87% Δημοκρατική Αριστερά 5,95%, ΚΚΕ 4,38%. (www.skai.gr).

A Greek party needs at least 40.4% of the vote to secure a majority seat in parliament; anything lower necessitates a coalition. It looks as though it's going to be the conservative pro-eurozone party, New Democracy, and leftist anti-austerity party, Syriza, vying for power. Will keep you updated as the night goes on.

Introduction

The Economist's iconic cover of June 2010.

At the national level, Greece has yet to form a coalition government following elections last week. If Europe's finance ministers make good on their promise to stop financing Greece's debt, the country will default on its debt and fall out of the eurozone. Once a taboo topic no EU official would dare utter, the subject of reverting to the drachma in Greece is now voiced publicly. 

Stay tuned for updates as the government continues its coalition talks and we prepare to launch local initiatives on the ground in Thessaloniki.