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Pascal Rossignol / Reuters
New Democracy supporters hold flares as they celebrate in front of the Parliament in central Athens on Sunday.
Updated at 4:49 p.m. ET: ATHENS - The pro-bailout New Democracy party came in first Sunday in Greece's national election, and its leader proposed forming a pro-euro coalition government. The result eased fears of an imminent Greek exit from Europe's joint currency.
"The Greek people voted today to stay on the European course and remain in the euro zone... there will be no more adventures, Greece's place in Europe will not be put in doubt," New Democracy leader Antonis Samaras said.
He said voters chose "policies that will bring jobs, growth, justice and security."
French socialists win absolute parliament majority
His party beat the anti-bailout Syriza party, which wanted to cancel Greece's international bailouts.
Yannis Behrakis / REUTERS
A Greek orthodox priest holds his ballot paper as he exits a voting booth at an Athens primary school used as a polling station on Sunday.
Syriza chief Alexis Tsipras conceded the election but vowed to continue its fight against the punishing terms of an EU/IMF bailout saving the country from bankruptcy.
"From Monday, we will continue the fight," Tsipras told supporters. "A new day for Greece has already dawned.
With 82.5 percent of the vote counted, official results showed the conservative New Democracy winning 30 percent and 130 of the 300 seats in Parliament. The radical anti-bailout Syriza party had 26.6 percent and 71 seats and the pro-bailout Socialist PASOK party came in third with 12.5 percent of the vote and 33 seats.
The anti-immigrant nationalist Golden Dawn party had 6.9 percent and 18 seats, while the Democratic left won 6.1 percent and 18 seats.
Because of a 50-seat bonus given to the party which comes first, that result would give New Democracy and PASOK 161 seats in the 300-seat parliament, in an alliance committed to a 130 billion euro ($164 billion) EU/IMF bailout keeping the country from bankruptcy.
Greek vote only buys some time in widening euro crisis
Sunday's vote was seen as crucial for Europe and the world, since it could determine whether Greece was forced to leave the joint euro currency, a move that could have potentially catastrophic consequences for other ailing European nations and the global economy. As central banks stood ready to intervene in case of financial turmoil, Greece held its second national election in six weeks after an inconclusive ballot on May 6.
The Eurozone's finance ministers said the outcome should allow for the formation of a government that will carry the support of the electorate to bring Greece back on a path of sustainable growth.
"The Eurogroup acknowledges the considerable efforts already made by the Greek citizens and is convinced that continued fiscal and structural reforms are Greece's best guarantee to overcome the current economic and social challenges and for a more prosperous future of Greece in the euro area," the group said in a statement.
"We congratulate the Greek people on conducting their election in this difficult time," the White House said in a statement. "We hope this election will lead quickly to the formation of a new government that can make timely progress on the economic challenges facing the Greek people."
Greece has been dependent on rescue loans since May 2010, after sky-high borrowing rates left it locked out of the international markets following years of profligate spending and falsifying financial data. The spending cuts made in return have left the country mired in a fifth year of recession, with unemployment spiraling to above 22 percent and tens of thousands of businesses shutting down.
Europe may be able to muddle through but the risk is rising. "There could be a Lehman's moment if things are not properly handled," Robert Zoellick, the outgoing head of the World Bank, told Britain's Observer newspaper.
The bankruptcy of U.S. bank Lehman Brothers in September 2008 triggered a global financial slump that indebted western nations are still struggling to recover from.
'Most important election in history'
The ongoing uncertainty was a prime concern for Greek psychologist Sofia Arvanici, who spoke to NBC News at a polling station in a northern suburb of Athens.
"This is Greece's most important election in history," the 36-year-old said. "We don't know whether we will have a government tomorrow, but we can't have more instability."
Bartering takes hold in austerity-wracked Greece
The European Union and International Monetary Fund have insisted that the conditions of the 130 billion euro bailout accord agreed in March must be accepted fully by a new government or funds will be cut off, driving Greece into bankruptcy.
Opinion polls show Greeks, weary after five years of deep recession, overwhelmingly favor remaining in the euro. But there is bitter anger over the repeated rounds of tax hikes, slashed spending and sharp cuts in wages.
"I voted with a heavy heart for a pro-bailout party because I want the country to stay in the euro, with the help of our European partners. I don't think the failed recipes of the left would get us out of this mess," Stratos Economou, 49, who runs a bakery shop in Athens, told Reuters.
Germans on edge as key Greek vote nears
Zoellick and other policy makers insist that the austerity Greece is living with is preferable to the alternative.
The Observer said the Zoellick would tell a G-20 summit that the euro crisis could hit developing nations hard, although clearly the effects would be felt further afield.
"Uncertainty in markets is now starting to increase costs for developing countries," he told the newspaper. "The ripple effects are making everybody's life harder."
Watch World News videos on msnbc.com
The G-20, which brings together finance ministers and central bank governors from 19 major economies and the European Union, will start a meeting in Mexico on Monday. The gathering in the Pacific resort of Los Cabos promised to be overshadowed by the elections in Greece and mounting worries about Spain and Italy.
During Sunday's election, voters will choose a new prime minister, but the election is also considered a proxy for a much bigger question: will Greece still use the Euro or not? CNBC's Michelle Caruso-Cabrera reports.
The fate of the euro as well as the European Union itself was top of mind for finance director Kostas Theoharis, 40, as he cast his vote near Athens.
"The main scenario is whether the euro will exist. This is the question that needs answered rather than whether Greece will be part of the euro," he told NBC News at an Athens polling station with his son Alex, 6. "I fail to see how Greece could leave the euro without breaking up Europe. I understand that this is a financial problem but it needs a political solution."
NBC News' Yuka Tachibana, msnbc.com's F. Brinley Bruton and Reuters contributed to this report.
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Follow us on Twitter: @msnbc_world
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yep, I'm reading the French and Germans ( Hollande and Merkel) are already dueling over the debt management. The French want to mutualise the debt while Merkel wants to create a special bank flushed by the banks themselves. Anyhow, they are disagreeing some more.
We have had a first hand view of our banking industry throughout the world these past seven years. Time for rewriting the laws of banking industries before we all go down the tube from this gambling scheme they have today.
Ah ah, the Chinese are laughing. The tube is so wide we haven't realized we're in it yet, but it gets narrower further down.
It's time to reset the dials, keeping track of debts at a point in time for later on to deal with. This is a sadistic farce played on the lower and middle class. The world's nations can't keep borrowing with interest to pay the interest on the debt already owed. This is an unproductive vicious circle that only benefits the banking industry. Obviously constant bailouts are not propelling the ship into orbit.
Europe and the rest of the world have nothing to fear. The Greeks will vote as they have been told to vote...as they have been terrorized into voting...as they've been blackmailed into voting....
All will be well tomorrow and the usual crooks, thieves and thug politicians will continue to bow to the IMF, offering up their very people on the platter of capitalism's sacrificial altar.
I hope Greece makes it out of this mess because they could be a big help for the USA in the future. We could use Greece to enter Turkey from the rear and we all know that is the way to handle Turkey. Seriously, I want to see the Euro fail because I predicted it years ago and now it could happen. I want to look like I knew what I was talking about and everyone will think I am smart. I always said that the europeans won't speak the same language but they will use the same currency? Thats not much of a union is it?
hmm - international bankers warn us that democracy threatens the world!
perhaps they should look in the mirror.
I find it difficult at best to see how an island nation of scurrying Mediterraneans, who can BARELY GET THE OLYMPICS TOGETHER (in modern times), could POSSIBLY affect the world economy--MUCH LESS the U.S. economy.
Maybe they should concentrate on MAKING MORE OLIVES and PAVING THEIR STREETS.
Regulation is the only way to long-term stability. Deregulating allowed for quick and large profits, which is why Reagan was praised as an economic genius, but his policy of deregulation has also allowed banks to become so large that they are the economy. The rest of us are just pawns for the banking system. If they have any concern about their country's, and our own country for that matter, stability they will make sure that regulation will allow for modest profits without the need for these corrupt loans and excessive debt. If you don't regulate then the economy does whatever it wants and we will be talking about another bailout soon enough. We need to learn to control our own economy as well.
Let's hope Greeks voters have more sense than America's idiot democrats.
the dumb as*es in this country arent gonig to be shaken,unless of course they elect someome from DWTS. We got a guy running for president for the GOP who has the same plan and ideas as the guy who got us into this mess,shows what we've learned.
I feel ashamed for comments full of hatred and ignorance about what the people of greece are going through.
The Greeks took a giant Sh*t in their food bowl. Now they have to eat it.
seek help asap,and get someone to help you with the big words.
HEY IT'S JOE the extreme liberal. With his quick sassy wit
You are going Bankrupt whether you vote for it or against it so do not give in to the Bankers Bailout Ponzie. We are all better if we go bankrupt. It would kill the Global elite not to have any more power. All Countries including the U.S. should consider this. If we are going down lets take them with us. Soon the U.S. dollar will no longer be the worlds Currency no matter how much money they print to try and keep the public Blinded from it Truly happening. IT WILL HAPPEN!!!!!
Plain and simple. Politicians borrow money to buy your vote to keep their jobs and power. Politicians borrow money for these privileges and then don't have to pay it back. Therefore, there is no vested interest for politicians to change unless we tell them too. Politicians usually have to borrow money after the tax money has run out and deficits have occurred while funding their pet projects. For example, social programs (for democratic politicians and their constituents like the federal, state government unions, welfare, teachers, police, medicare/medicaid for seniors, etc) or foreign wars and unfunded tax cuts (for republican politicians and their constituents like the 1%, big oil company's, any corporation, military contractors and all those people employed in that sector). Either way, politicians borrow money while both the Banks and Society love the money being handed out to them until the whole system collapses. Be it Socialism, Marxism, Fascism and yes even CAPITALISM (i can hear the gasps now)... because no system is perfect and is full or internal corruption. Fixing the problem takes a disciplined approach from everyone. But we all like the free handouts and are easily manipulated by the wonderful allure of money. Plain and simple.
Go! Greece Go! Shake this world off it's foundation! Wake up the sleeping!
In old Europe due to Jew not being allowed into trade unions called Guilds , were forced to be money lenders /which according to Jewish Law they rather not have been . These Jewish money lenders would lend to Kings and not be paid back because the Kings decide they did not have to pay these loans back.
Today the money lenders have the ability to cripple the economy of the world .
In our so called financial crisis the money lender brought on the crisis by packaging loans in the form of company stock or in special mortgage bond portfolio with the bonds backed by mortgages. Of course the mortgages were improperly made many with Government assistance to create income for banks who were in fact supporting the politicians elections effort . Sometimes these were not just commercial banks but also investment banks . Additionally there was insurance on these product manly sold by AIG which sold insurance at a low price because they were not regulated . In fact Mr Clinton was behind this and his Administration whereby they passed laws to have 2 regulators of Aig and when one rule the other didn't which had the effect of no regulation at all. Soon these insurance contracts were traded by Wall Street , so that some institutions got these insurance contract and much less than par and made a profit on the financial crisis because the certificates of ins were redeemed by public money at par instead of under par . Not only was AIG too big to fail , but the entire financial system were based upon this so called insurance kicking in as asset that had to be paid at par . If they indicated these asset were not worth par to counter the entry of the loss on the actual packaged mortgages they would have no money to lend and in fact were bankrupt . This is for some of the banks other of the institutions knowing that all this was going to blow up , bought these certificate of insurance at deep discounts to their value when housing prices were high . These institution made a fortune by the people 's money bailing put the financial system or you and I bailing out the bank through paying out par on their insurance and so others made a fortune as speculators by the increase price to redeam their insurance . The point of all of this is that for the most part a crisis such as their has been in the works for years . It is not the fault of the people and in the most part it is the fault of the governments and politiican who made laws like Mr Clinton so that there would be no regulation of Aig .
The point is the Greek people are not the fault here . Yes they can become more productive and have less vacations and retire at a respectable age which they don't now , but so what if their government goes on a spending spree . What about a Government forced to go on a spending spree . This is what the Greek government is being forced to do . Why? Well you see the IMF and EU monies are going to have a superior lender than any prior existing lender . This means this lender get paid off first ahead of any other lender . Well the problem with this is that the Government of Greece that gets stuck with this will have constant decrease in its credit rating so it will not be able to get credit and or have to pay huge sums for short term credit financing . This could put them in a worse bind than they were before . Greece would better off leaving the EU and promising debtors that will pay off principal and interest in a longer time frame then they are given now , and cuts should be institutedto make Greece more productive especially if they are on their own . Basicly we , in the USA should withdraw from being a nation who gives other people money in the form of money , interest free loan, and military help which is supposed to evolve into some liking of the USA.
We are getting to Greek situation and we are one of the most productive countries on the face of the earth . Our problem is with our politiicans and what they do when they get their hands on money . Obama , and the Democrats are the pits with this . As for the Republicans they are as much responsible for the our financial disaster as the Democrats , creating a two no win wars with nothing in these wars for the American people but big war time profits for those who are in wartime industries . The socialist party is the best party for both Greece and the United States for at least the socialist realize they work for the people and not for those pulling strings . Many countries are like ours with governments that are against the people . Sure Obama has pulled out lollipops like giving children who were insured by their parent insurance of minimum nature and other lollipops now to illegal aliens allowing them to be legal even though they knew they were illegal . Obama says these illegals did not know they were illegal insulting all of us who have any brains at all. Government is our main problem .
Screw the Greeks. This is what socialism , unionism and government entitalments gets you.
The libs here want the same bs as Greece.
you are wrong. This is what poor money management gets you. Plain and simple.
I agree Jim, welfare states will not survive long. Unionized public sector is also not able to hang for long either. piss poor managemnet is a part of both things that sink major economies...just like the waste and fraud we have in our system. Gov cannot continue to afford to pick up the tab on a huge % of the total population, public sector is just surviving by taxing the private sector, they...we are running out of money and now jobs will go to the illegals even more.
I have spent some time in Athens & surrounding area. It is beautiful & the people are excellent. It's sad to see. We in the USA are not as far from this scenario as I would like. This should be ringing alarm bells in our heads. To start electing officials who act as if the tax money they spend is not "manna from heaven" but the hard earned money of the voters. We are already unable to bring our infrastructure up to reasonable standards. Where will the money come from when the next hurricane hits New Orleans, or a west coast earthquake brings down a city. Either event could trip us over the edge to land where Greece is.
What the Greeks do will affect us here in the US because the globalists WANT it to affect us. Beyond that, it really doesn't matter.
I sure that Magical @!$%# Obama will help them out.
ONLY IF HE CAN GET A VOTE.
LMFAO!!!!!!!!!!!!!!!!
not funny ,
but true
It is insane that the economic systems of the world are at the mercy of an economy the size of Delaware. The problem, it appears, is not so much Greece, as how the global economy is managed.
Waaaaaaaaaaa. Greeks are tired of austerity.
They expect their union jobs, welfare, early retirement, 6 weeks of vacation and all their other FAT socialist benefits whether they have any money to pay the benefits or not.
Hmmmmm, sounds a bit like the liberals, unions and the entitled in the USA.
It's bizarre that this inconsequential little country of people who don't want to pay their bills is accorded this kind of importance in world economic matters by the media.
Throw them out of the EU, and let them fight internally over how to use their own worthless currency.
Time for the rest of the world to move on to something meaningful.
Welcome to the beginning of the end of nations. One World Banking is the Agenda. Bankers Holiday is upon. Stash your cash and prepare if u want to or not. Unless we all get togtether and protest their divine plan to control the world.I love freedom and happiness and I will do anything to keep it. We will lose it.
"Stash your cash", don't stash your cash. Trade your cash for real money and stash it.
Think it's not going to happen here? Think the entitled here will accept cutbacks/austerity?
Dollar collapse and forced cutbacks/austerity coming soon to an America near you.
BE PREPARED.
1. Federal government debt … $14.3 trillion
2. Treasury and Fed cheap-money policies … $23.7 trillion
3. Social Security’s rising debt … $40 trillion
4. Medicare’s unfunded debt … $60 trillion
5. Annual health-care costs … $2.5 trillion
6. Secretive global derivatives trading … $604 trillion
7. Population growth of 50% vs. Peak Oil demands … $30 trillion
8. U.S. dollar losing as reserve currency … $20 trillion
9. Global real estate losses … $15 trillion
10. Foreign trade and ownership … $5 trillion
11. State and local budget and pension shortfalls … $3.5 trillion
12. Corporate pensions plus 401(k) plans … $3.2 trillion
13. Consumer card debt … $2.5 trillion
14. Lobbyists annual costs … $1.4 trillion
If your all wondering how Greece will vote before the results are tallied today log onto www.urbandictionary.com and look up the definition of "Greek Sex": A term used in prostitution circles for anal sex. aka "To bend over and take it in the ass.."
Yep, I would say it's a no brainer Greece will be droppping the Euro today..
Greece has an ongoing stimulus package that is working there as well as it did here. Go see a financial advisor when you spend yourself into a mess and see if he tells you to take a big loan and spend like hell.