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.