Following the May 6th elections , the new government in Athens must now put in place further budget cuts . These have to be implemented by the end of June . Failure to do so will mean that The IMF will withold its next financing . The Greek authorities would then , literally , run out of money . A managed approach to austerity would then be replaced by chaos .
The future of the €uro lies in Athens . Markets will be watching closely to see whether a coalition government can be formed in order to implement the changes. If not fresh elections will follow. The chances of a Greek withdrawal from the common currency are real and rising . The new French President, Monsieur Hollande , may soon find out just how much the Paris banks are on the block to Greece.