Greeks Vote in Local Elections amid Painful Austerity

Greeks have voted in local elections on Sunday amid fears of another set of austerity measures. The lenders of Greek bailout package IMF, EU are sending their officials to Greece, to monitor progress of Greece in implementing fiscal tightening measures imposed by the bailout package. They will have to decide whether $9 billion of emergency loan installment, due in November, can be released or not.

Greece pledged to reduce its fiscal deficit to 8.1 percentage of GDP by the end of current fiscal year. But, declining tax revenues may mean that Greece will be able to manage to cut the deficit to between 9.2 and 9.3 percentage as per Reuters on November 14. Greece Prime Minister George Papandreou is hopeful that repayment of loan will be extended, which is denied by a European Central Bank Board member.

The ruling party is reportedly won two super regions in the first round and 11 others are slated to go for run-offs on Sunday. Earlier, the Prime Minister has warned he would go for snap elections if his party delivers poor performance in local elections. But, later he has ruled out such snap elections after coming to know that he won two super-regions.

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