Greek stocks plunged Tuesday after the government unexpectedly brought forward a high-stakes presidential election, sparking fears of a political stalemate.

The decision came after eurozone finance ministers said they were in favor of granting Greece its request for only a two-month extension to its bailout program, a boost for Prime Minister Antonis Samaras who has been pushing for an early exit from the program which is deeply unpopular in Greece.

The vote by 300 members of parliament to replace President Karolos Papoulias had been due in February but has now been set for a first round on December 17.

Parliament's vote to select a new president could trigger early elections if Samaras fails to get his candidate for president elected.

He needs the support of 180 lawmakers in the 300-seat chamber to scrape through the vote - support he does not currently have.

However, officials and analysts said the move to bring forward the vote was a sign that the coalition government, which has 155 lawmakers in parliament, has improved prospects of securing the level of support it needs to survive.

Greek law stipulates that parliament must be dissolved and new elections called if parliament cannot elect a president.

"The market's sentiment is that the prime minister is now more certain that he will find the 180 MPs, as the government tries to put an end to political uncertainty," Beta Securities analyst Takis Zamanis told Reuters.

The decision effectively throws down the gauntlet to nearly two dozen independent lawmakers sitting on the fence, allowing Samaras to argue they have a choice on whether to side with his pro-bailout government to lead Greece out of the woods or usher in a new period of uncertainty with snap elections and the potential victory of leftist radicals who have vowed to tear up the bailout.

Samaras has yet to announce his candidate for the presidency. The vote will be held over three rounds.

Samaras had been staking his survival on exiting the unpopular EU/IMF aid program by the end of this year, but the plan ran into trouble as Athens and its lenders haggled over next year's budget.

Greece still needs to resolve the final bailout review with its lenders and finalize details of the bailout exit, including the conditions tied to an interim, post-bailout program.


Newspaper headline: New president needs support of at least 180 lawmakers to get approved