As we had been expecting, the third and final round of the Greek parliamentary vote to elect a new President failed and the country is now headed for a general election. The most likely date for this is January 25th (+/- a week, elections are always held on a Synday), with the constitution stipulating that parliament has to now be dissolved within ten days (most likely tomorrow) and elections held as soon as possible after. With Greek banks still reliant on the ECB for funding and bond maturities ongoing throughout 2015, a significant period of political and financial uncertainty now opens up for Greece and the Eurozone as a whole. Here are the three major questions that need to be answered as we enter the New Year:

1. What will the European response to early elections be? ... Leggi Articolo Completo »