
The Euro Zone crisis is escalating, as Greece may be on the verge of a final collapse. According to the Reuters, anxious Greeks have started a bank run, withdrawing as much as 700 million euros ($894 million) from the nation's banks on Monday. Greece's political leaders meet on Wednesday to form a caretaker government to take it to a second election in just over a month, with its euro membership at stake and its president speaking of "fear that could develop into panic" at its banks. President Karolos Papoulias was forced to call a new vote after failing to cobble together a coalition government. An election on May 6 saw leftist opponents of Greece's EU/IMF bailout deprive the parties that ran the country for generations of a majority. Polls suggest the radical left are poised to win the re-run. That prospect has shaken faith in Greece's ability to remain in the single currency and stay solvent, sending the euro and European shares lower, and raising the bond yields that reflect the risk that other European countries will be hurt. Greeks are withdrawing euros from banks, apparently afraid of the prospect of rapid devaluation if the country leaves the European single currency, minutes of Papoulias's negotiations with political leaders showed. Central bank head George Provopoulos told him savers withdrew at least 700 million euros ($894 million) on Monday, the president told party chiefs. "Mr Provopoulos told me there was no panic, but there was great fear that could <b>...</b>
Athens
Austerity Measures
Bailout
Bank Run
Default
Economic Crisis
EU
Euro Zone
Euro Zone Crisis
Euros
Financial Crisis
Global Economic Contagion
Global Economy
Greece
IMF
Italy
Riots
Suicides