Europe holds breath as Greeks go to polls -- again

Athens (CNN) -- Greeks are voting Sunday in an election that could decide the fate of the euro, a currency used by 325 million people across 17 countries in Europe.

Sunday's parliamentary election will determine who leads a country paralyzed for months by a political and economic crisis. The party that wins the most seats gets the first chance to form a government.

The radical leftist who hopes to emerge as prime minister, Alexis Tsipras, cast his vote Sunday morning, saying his Syriza party had beaten fear and was opening the road to hope.

Tsipras has vowed to tear up the conditions attached to massive international loans that are keeping Greece from defaulting on its debts.

The possibility that his party could lead a new government has prompted waves of fear that Europe's ambitious experiment with a common currency could collapse.

Some analysts have estimated that the collapse of the euro would cost $1 trillion, while others say talk of the break-up of the currency is alarmist and unlikely to happen.

Syriza was neck-and-neck with a very different party, New Democracy, in the last official polls two weeks ago. No new polls are allowed 14 days before the vote.

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The center-right New Democracy party favors sticking to the terms of the unpopular deal with Greece's international lenders, the European Commission, the International Monetary Fund and the European Central Bank. They demanded public spending cuts to slash Greece's enormous deficit.

The radical left-wing Syriza party wants to tear up the current bailout agreement, which markets fear will lead to a "disorderly exit" from the eurozone.

"We're an equal member of a Europe that is changing," Tsipras said as he cast his ballot on Sunday.

Neither party is likely to get a majority on its own, and will need to form a coalition with other parties in order to govern.

 Sunday's election was called after an initial ballot on May 6, the first since Greece's financial crisis exploded, failed to deliver a majority for any one party. Talks to create a government failed.

 Since then, Greece -- suffering under a heavy burden of painful austerity measures, high unemployment and a long-running recession -- has been roiled by uncertainty and division.

Global markets have also been volatile amid fears that Greece could exit the euro currency union, a step that could drag down other ailing euro nations and send shock waves through the world's financial markets.

Many voters were focused on Greece's Euro 2012 soccer match against Russia on Saturday night in Warsaw -- a welcome distraction from the political drama playing out at home, especially after Giorgos Karagounis's goal helped propel the Greek side into the high-profile tournament's quarterfinal round.

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Some analysts fear Sunday's election could again result in no clear winner, leaving Greece with a weak caretaker government at a time when the nation needs clear leadership.

Syriza leader Alexis Tsipras has threatened to renege on the terms of Greece's bailout, but he has also expressed a desire to remain in the euro currency union.

Antonis Samaras, leader of New Democracy, has said his party wants to remain in the eurozone and alter existing policies, including stringent austerity measures, to "achieve development and offer people relief."

New Democracy and the Socialist Pasok party were punished by voters in the last election for supporting the bailout program, as well as for agreeing to the austerity measures that came with it.

Greece must identify additional budget cuts by the end of June to be considered "compliant" with the terms of its bailout program.

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Speaking to his Cabinet for the last time Friday, interim Prime Minister Panagiotis Pikrammenos praised the spirit of teamwork the caretaker government had shown in office.

"Greece will have a much better outcome, if we all put aside our differences and work towards the common good of this nation," he said.

His government had dealt with difficult issues in the past 30 days, he said, and its work would continue until a new elected government was in place.

The situation in Greece is likely to be on the minds of world leaders, as they meet in Mexico on Monday for the Group of 20 summit.

Some experts argue that a potential Greek exit would be manageable, assuming the European Central Bank and European Union policymakers respond aggressively.

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But others worry that such an unprecedented event would cause chaos in financial markets and shock the global economy.

What does it mean to be Greek right now? Tell us on CNN iReport.

Posted in: World business