Greece will hold new elections on June 17, state media reported Wednesday, amid a political and economic crisis that could have effects far beyond the country’s borders. News of the election date came as Greeks pulled hundreds of millions of euros out of the banking system amid fears that the country will not be able to stay in the European Union’s single currency. Just 10 days ago, Greeks voters punished the major parties for harsh budget cuts, leaving no party able to form a government. A caretaker administration led by a senior judge will run the country until the new vote.
Interim Prime Minister Panagiotis Pikrammenos was sworn in Wednesday. The president’s office said Cabinet ministers will take their oaths of office Thursday morning. The political deadlock is leading to fears that Greece will not have a government in place when it needs to make critical debt payments, which could in turn jeopardize its place in the eurozone, the group of 17 European Union countries that use the euro currency. And a Greek crisis could spread, one analyst warned.