Greek election: Five questions for markets

Greek Prime Minister and conservative New Democracy party leader Kyriakos Mitsotakis (right) and leftist SYRIZA party leader Alexis Tsipras (left), take part in a televised debate at the headquarters of the state broadcaster ERT, in Athens, on May 10. [Alexandros Avramidis/Reuters]

Greece votes on Sunday in what is likely to be an inconclusive election, meaning short-term uncertainty as markets wait to see whether a coalition government or a second-round vote follows.

Incumbent Prime Minister Kyriakos Mitsotakis' strong relationship with the European Union and commitment to reforms should reassure investors if he is successful. An economy in a strong shape means a win for the opposition leftist SYRIZA Party might not unnerve markets as it did when it won in 2015.

"It's [Greece] gone from being on the brink of being kicked out of the eurozone in 2015 to a situation where nobody is seriously worried in the near term," said Capital Economics' chief Europe economist Andrew Kenningham.

Here are five key questions for markets.

1/ What is the biggest issue for voters?

The cost-of-living crisis, with inflation...

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