Greek election is 'euro versus drachma'

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Greek election is 'euro versus drachma'

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Greece’s conservative leader has warned voters that they face a choice of sticking with the euro or a “nightmare” return to the drachma.

Antonis Samaras has been addressing thousands of supporters ahead of Sunday’s parliamentary election re-run.

His New Democracy party, which backs the country’s international bailout, is running neck and neck with the radical left Syriza party. Syriza’s fresh-faced leader is threatening to tear-up the strict terms of the 130 billion euro debt deal.

However, lenders propping up Greece have warned they will pull the plug if the agreement is rejected and that could mean an exit from the euro.

“I don’t expect a complete meltdown. I actually expect Syriza to go to the ECB and probably be less strict on their demands,” said Joe Rundle, a financial analyst.

“So I don’t expect much to happen even if Syriza get in. They can’t afford a euro exit because they have got to pay their workers,” he continued.

No party is expected to come away with an outright win. There will be negotiations to form a pro or anti- bailout coalition.

Samaras has said that Greece cannot afford a third election and must form a government this time round.