Uncertainty over the future of Greece's position within the Euro zone continued unabated on Wednesday, as attempts to form a coalition government failed and a date for new elections was set for June 17.

Mr Panagiotis Pikramenos, the head of the Council of State, has being appointed head of the interim government.

While European leaders have continued to re-iterate their commitment to keeping Greece within in the Euro zone, over in Greece there are growing fears that the country will have no choice but to leave “on Monday alone €700 million were withdrawn, according to the nation's central bank, with a report in the Financial Times suggesting that figure was as high as €1.2 billion by Tuesday.

The question going forward will be: to what extent will a new Greek government be able to find common ground with other European leaders over the austerity programme the country is committed to under its bailout regime, and whether France's new leader, Mr Francois Hollande will cut through the pro-austerity voice within Europe.

It should be noted that Mr Hollande, who met with the German Chancellor, Ms Angela Merkel, on Tuesday reiterated that it was important for Greece to stick to its current commitments.

“We think that Greece will be given the possibility to stay in the Euro area only if it adheres to the Troika's programme,” said Barclays analysts in a research note published on Wednesday.

Shares in Europe continued to drift lower on Wednesday, over concerns about the potential impact of such as exit on the rest of the region.

“Residents of other countries, such as Portugal, Spain, Italy or Ireland, might well conclude that the probability of leaving the Euro zone has increased, prompting them to move deposits out of their banks,” warned UBS in a note this week.

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