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Greek elections over the weekend have resulted in a win for the conservative New Democracy Party, with the leftist Syriza party trailing a close second. The New Democracy Party won 30 percent of the vote, and and 130 of the 300 Parliamentary seats, while Syriza won 26.6 percent and 71 Parliamentary seats. Since no single party won a majority, there will have to be a coalition government formed. However, the main issue at stake is how to exit from the European fiscal crisis. There is strong disagreement between the top two parties over preserving the Euro, and using cuts in social spending – so-called austerity measures – to rebuild Greece’s economy. Alexis Tripras, the young and energetic leader of the anti-austerity Syriza party said after conceding defeat, “the people have won the elections because now they cannot proceed with bailout agreements and they recognize this both in Greece and in Brussels.”

Meanwhile, the Socialist PASOK Party came in third place, with 12.5 percent of the vote and 33 Parliamentary seats. PASOK was in favor of the Greek bailout and accompanying conditions. It is the second time in six weeks that Greeks have had to vote in national elections after the earlier election failed to produce a government administration. It remains to be seen if this election will result in a stable ruling coalition.

GUEST: Stergios Skaperdas, Professor of Economics University of California, Irvine