ATHENS - Greece's parliament was dissolved Wednesday ahead of an early election watched warily by markets and international creditors concerned that the austerity-weary country could starting unwinding unpopular fiscal reforms.
A statement from the chamber said the election would be held on January 25 -- as announced Monday by Prime Minister Antonis Samaras -- and the new parliament would reconvene on February 5.
Samaras had warned Tuesday that the financially-stricken nation may be forced out of the eurozone if the election is won by radical leftist party Syriza which has vowed to reverse years of austerity imposed in return for financial aid.
This struggle will determine whether Greece stays in Europe, Samaras told President Karolos Papoulias.
On Wednesday, Samaras warned again that Syriza planned not to pay interest rates, and therefore to lead the country to a payment default and bankruptcy.
His assertion followed comments by two Syriza officials alluding to a debt repayment freeze if Greece's creditors refuse to renegotiate the country's bailout deal.
Perhaps we shall not pay. Because we will negotiate and say that this programme is not viable, Yiannis Milios, the party's economic policy head, told Antenna TV.
Another party cadre, Yiannis Tolios, told Action 24 TV It's in our party platform, we may decide to stop paying interest rates on maturing debt.
Fears of a potential Greek exit from the eurozone have already rattled markets and sparked concern throughout European Union capitals.
Greek stocks closed down almost four percent when the election was announced on Monday, after losing a massive 11 percent earlier in the day.
On Wednesday the bourse finished 1.23 percent higher.
It was parliament's failure to choose a new president in three successive votes this month that triggered the snap poll.
As its first order of business, the new chamber must elect a successor to 85-year-old Papoulias, whose five-year term ends in March.
In his New Year's message to the nation, the outgoing president said the country still faced uncertainty.
We still find ourselves in a position of uncertainty, because there are significant issues pending in the negotiations with EU-IMF creditors, Papoulias said.
He said Greece had to find a new balance in its relationship with its creditors but also safeguard its position at the heart of Europe.
AFP
