The final critical talks amongst Greekparty leaders over the formation of a national unity government tolead Greece after the May 6 parliamentary elections collapsed onTuesday and the country is now heading to fresh polls in June, thepresidency announced. "Efforts to form a coalition administration ended with no result.On Wednesday a new party leaders meeting will discuss theappointment of a caretaker government to lead the country to repeatelections," the presidency said in a statement that was broadcaston Greek national broadcaster NET. The announcement was made at the end of a meeting of party chiefschaired by Greek President Karolos Papoulias at the PresidentialPalace in a last-ditch effort to form a unity administration ofpolitical figures or technocrats that would be backed by three orfour of the seven parties that entered the new parliament. Tuesday's meeting was attended by Antonis Samaras, head of theconservative New Democracy (ND) party that ranked first in thepolls, Alexis Tsipras, chief of the Radical Left coalition SYRIZAthat came second, and socialist PASOK party leader EvangelosVenizelos. |
They were joined by head of smaller Democratic Left party FotisKouvelis and head of the Independent Greeks Panos Kammenos who wereregarded by local analysts as possible coalition partners in anational unity administration. However, divergence amongst the pro-bailout and anti-austerityparties over the economic policies Greece should follow to tacklethe alarming debt crisis that since late 2009 threatens the countrywith disorderly default was not bridged. ND, PASOK and Democratic Left supported a review of some toughausterity conditions set by international creditors in the twobailout deals signed since May 2010 and a gradual "disengagement"of the contracts. SYRIZA and right nationalistic Independent Greeks on the other handheld a harder line in renegotiations with European counterparts andthe International Monetary Fund.
According to the Greek constitution, Papoulias is due to ask thehead of the Supreme Court to form a caretaker government to leadthe country to the second round of elections. According to Greekmedia reports, the most likely dates are June 3, June 10 or June17. The political instability that added to the financial crisis inGreece has fuelled fears that the country could face the risk of achaotic default and an exit from the eurozone, which could sendshockwaves across Europe and the international financial system. Related: Eurogroup head dismisses talk of Greek exit from euro "nonsense" BRUSSELS, May 15 (Xinhua) -- Eurogroup head late Monday stronglyrefuted the talk of Greece leaving the euro area and hinted at thepossibility of softening some of the terms in the bailout programif the country reaffirms its commitments to the rescue plan. "I don't envisage, not even for one second, Greece leaving the euroarea.
This is nonsense, this is propaganda," Eurogroup PresidentJean-Claude Juncker said at a press conference after nearly sevenhours of talks of eurozone finance ministers. Full story.
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