A Greek exit, or "Grexit," from the Euro would be calamitous:
A recent analysis from UBS Investment Research found that Greece could lose 50 percent of its economic output in the first year alone after an exit. Not only that, but Greece wouldn’t get any bailout money from the troika, and it wouldn’t be able to borrow money from anyone else, so it would have to implement even more severe austerity measures than it’s already being forced to do. Other reports have found less apocalyptic, but still dire consequences. The Financial Times has a fuller rundown of some of the ways a Greek exit could play out. None of them are pretty.
After failing to form a governing coalition, Greece will vote again in June. Syriza, a far-left anti-austerity party, is ahead in the early polls:
Support for SYRIZA has accumulated behind its rejection of any new austerity measures, and in particular the so-called "Memorandum of Understanding" signed by leaders in February to make way for approval of the second Greek bailout. The party has argued that current bailout agreements must be significantly renegotiated and that the economic reforms that have exacerbated Greece's six-year economic downturn must be stopped.
How Yglesias describes the situation:
[Syriza party leader Alexis Tsipras] says he rejects the EU-imposed austerity program but wants to stay in the Euro and in the European Union. But Greece has a large primary budget deficit and no source of market financing. The EU is insisting on an austerity program, but it’s also giving them cold hard cash in the interim. Reject the austerity program and you lose the EU/IMF money and need to implement an even harsher austerity program. Tsipras is a bit like a guy standing in your living room threatening to blow his own brains out unless you pay him money, a proposition he offers on the theory that you’d rather not see your furniture ruined.
Ezra Klein adds:
Of course, what Tsipras wants and what he’ll be willing to take when he sits down with euro zone officials are very different things.
The Dish 