Greeks Vote In Election Critical to Euro Zone Future

Greeks began voting Sunday in an election that will determine the country�s future in the euro zone and dictate the direction of financial markets for the next few days at least.

The poll essentially is a referendum on March’s 130-billion-euro multinational bailout and the painful austerity measures demanded in return.

The main parties vying for power are New Democracy and Syriza. New Democracy, which endorses the bailout, and Syriza, which opposes it, are neck and neck in unofficial opinion polls. Official opinion polls are banned in the final two weeks ahead of a vote.

Analysts give an edge to center-right party New Democracy, an established party with a history of government.

Syriza is�a party newly formed from a disparate group of left-wing groups that has grown in popularity after tapping into public anger and discontent at the harsh economic conditions imposed on Greece under the terms of the bailout. In recent days it has softened its message, and its leader said he wants to keep the euro. Greeks have consistently expressed their desire to remain part of the euro zone.

Sunday�s vote is a re-run of an election May 6 that ended with none of the parties securing enough votes for an absolute majority or able to cobble together a coalition.

Markets across Europe will get a lift from a result that sees New Democracy heading a government, though any gains will be short-lived. A result that sees Syriza leading a government would spark a selloff, though any losses likely would be retraced in the days that follow. If no party is able to form a government, markets also would head lower.

Greece’s lenders could halt disbursements of loans if Syriza wins, accelerating Greece’s exit from the euro zone. The departure of any country would set a dangerous precedent.

Polling Sunday appeared to be proceeding without incident. The mood of the country was given a lift by the Greek national soccer team�s upset 1-0 win late Saturday over the strongly favored Russians at the European Championship in Poland. It is a big deal for a country that has had little to cheer for some time.