‘Drachmaggedon’ averted – for now

Greece's new pro-bail-out coalition narrowly avoided a messy fallout with the eurozone. But the crisis lingers on without any sign of a resolution.

The latest eurozone-induced market bounce "barely saw out the hour", says Jeremy Warner on Telegraph.co.uk. On Monday morning, markets were relieved that an anti-bail-out majority had failed to materialise in Greece's election.

That would have implied a stand-off with the rest of the eurozone, a likely end to rescue funds, and the reintroduction of the drachma as Greece was forced to print its own currency to keep the country going. That in turn would probably have been accompanied by a bank run as people tried to take their euros out before they turned into devalued drachmas. Panic could well have spread to the rest of the European periphery as other populations feared defaults and euro exits in their countries.

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