Conservatives take the edge in Greek election

Greece has avoided financial catastrophe as its people vote to stay in the euro, electing the right-leaning New Democracy party.

The margin is slim over the anti-austerity Syriza party, but for being first past the post, the party gets an extra 50 seats.

But The Telegraph's Andrew Gilligan has told Newstalk ZB's Mike Hosking the country is just staving off its inevitable exit from the euro.

He believes it's unlikely Greece will still be in the EU by the end of next year.

"The whole fabric of society is collapsing under the austerity package being imposed by the EU, and it's simply not sustainable but at the same time I don't think the Germans can allow a really enormous relaxation of that austerity package."

Andrew Gilligan says in the end the best option might be an organised and orderly withdrawal - even though Greeks don't want to return to the drachma.

The Greek election is being closely followed in this country.

Like others, the Government here is hoping the Greek people don't ditch their austerity deal by voting in a left wing government.

Europe's worried a vote in that direction could trigger a disaster for banks which have lent the country so much money.

Bill English is watching on this morning, saying it's a time of maximum uncertainty.

The Finance Minister is hoping that because Greece is a relatively small economy, its exit from Europe won't set off a train of negative consequences which would affect this country

Photo: Supporters at a political rally in Greece (Getty Images)