Reaction from China

People in China are also concerned about the election as it will have consequences for the economy. Many netizens have commented on the election.

"Whether Greece will remain in the eurozone will significantly affect China's economy, especially its exports,'' said Ma Junjie, investment director with CMHJ Partners, a company based in Shanghai.

"I hope the Greek election will turn out well so that the stock market can rise a little bit," said an Internet user named "Milantaishan" in a post on the Sina Weibo.

Liu Yihui, an expert with the Financial Research Center of the Chinese Academy of Social Sciences said that new threats could emerge.

"Even if the Greek debt problem can be solved and it stays in the eurozone, Italy and Spain could be the new threats, as their economies are so big the proposed bailout fund would not be enough.

"Once Spain drops into recession, the cost of loans will increase sharply and lead to serious market disruption, which will then pull down indebted Italy."

The ensuing volatility in European financial markets will probably drag the global economy into a depression, Liu said.

"In the short term, the European Central Bank may have to inject liquidity into the market just like the US Federal Reserve did."

Yu Yongding, an economist with the Chinese Academy of Social Sciences and a former central bank adviser, said earlier that if the debt crisis can be controlled and Greece is the only victim, "there won't be a catastrophic effect".

"As the European Union is China's largest trade partner, we should get ready for the potential surge of unemployment in the export-oriented sectors."

Yu suggested that the Chinese central bank takes contra-cyclical measures, including adding liquidity, to offset the decrease of net foreign capital inflow thanks to the market's fears of further EU deterioration.

Contact the writer at fujing@chinadaily.com.cn

Tan Xuan contributed to this story.