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Will Greece Drop the Euro?May 16, 2012 By: Newswire
Worrisome news from the Eurozone today: The BBC is reporting that the euro has hit a four-month low against the dollar as political uncertainty in Greece fuels speculation the country could be forced to leave the single currency.
The euro fell more than a half a cent to $1.27, pushing stock markets lower.
On Tuesday, Greek politicians failed to form a coalition, meaning the country will go to the polls again next month. In elections earlier this month, the majority of Greeks voted against those parties backing drastic austerity measures agreed with the European Union (EU).
Some Greek politicians have talked about renegotiating the terms of the massive bailout by the EU and the International Monetary Fund to relieve the burden on the country's economy, which has been in recession for four years. Analysts and some politicians are now openly discussing the possibility of Greece leaving the euro.