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If Greece can form a government and that government signs up to thebailout agreement, then it's possible some of the targets in theprogram could be softened, the chairman of the euro zone financeministers, Jean-Claude Juncker, said. "I don't envisage, not even for one second, Greece leaving the euroarea. This is nonsense, this is propaganda," Juncker, who alsoserves as Luxembourg's prime minister, told reporters, dismissingthose who threaten Greece with expulsion. "The exit of Greece out of the euro was not the subject of ourdebate today. Absolutely no one, absolutely no one, argued in thatsense," he said after six hours of talks among the 17 ministersfrom the euro zone countries. "But the Greek public, the Greek citizens, have to know that weagreed on a program and this program has to be implemented." Eight days after inconclusive elections, Greece's political partieshave failed to form a coalition and opinion polls show thatanti-bailout parties would perform most strongly in a fresh votewhich is likely next month. Last ditch talks led by President Karolos Papoulias on Mondaylooked unlikely to make headway after the leader of the radicalleftist SYRIZA party said he would not attend and another left-wingleader refused to take part in any coalition without him. The central demand of SYRIZA leader Alexis Tsipras is to tear upthe EU-IMF bailout agreement, which imposes harsh austerity onGreece. EU officials have stressed that room for renegotiation of the 130billion euro bailout is very small, although Juncker appeared tooffer some leeway to Athens, if Greek parties manage to overcomedifferences and back the bailout reform plan. "If there were to be dramatic changes in the circumstances, wewouldn't preclude a debate about an extension of the period (forGreece to meet targets)," Juncker said. "I didn't say there was any intention to extend the periods, wehave to do things in the appropriate order," he said. "We need a Greek government, the Greek government would have tomake clear it was fully committed to the program, and then if therewere exceptional circumstances, we wouldn't exclude the possibilityof discussing this issue. "It wasn't discussed today because those two other conditions werenot met: we haven't got a Greek government and we haven't got anyparticular circumstances to warrant this discussion. Anyway, therewouldn't be any substantive change involved." With Greece set to run out of money as early as next month and nonew government in place to negotiate the next aid installment,investors have begun betting that a chaotic Greek default and euroexit will happen sooner rather than later. Talk of any member exiting the euro zone used to be a taboo forpolicymakers. Not anymore. Over the weekend, European Central Bank policymakers Luc Coene andPatrick Honohan both openly voiced the possibility of Greeceleaving the currency bloc and concluded that it would not be fatalfor the euro zone. But there are powerful incentives for keeping Greece afloat, notleast that the ECB and euro zone governments are major holders ofGreek government debt. A hard default could leave them with heavy losses and if the ECBneeded recapitalizing as a result, that bill would also fall on itsmembers' governments, with Germany first in line. CONTAGION The biggest fear for the euro zone is that chaos in Greece coulddrag the much larger economies of Spain and Italy down and threatenthe entire currency area's existence, a risk markets are beginningto price in. The cost of insuring Spanish government debt against default hit anall-time high on Monday and the premium investors demand to holdSpain's debt rather than Germany's reached its highest point in thecurrency bloc's history. Euro zone finance ministers welcomed Spain's efforts torecapitalize its banking sector -- hit hard by a collapse of theSpanish real estate market -- and its idea of external verificationof the sector's health. But Madrid must move fast, euro zone ministers said. "We call on the Spanish authorities to speed up the externalassessment of the situation in the banking sector and to take thenecessary steps to put in place credible backstop mechanisms thatcan be used in case of need. Indeed, in the current circumstances,speed is of the essence," Juncker said. Italy's borrowing costs rose at an auction but it paid less toborrow over three years than trading prices had suggestedbeforehand and it sold the maximum planned amount of 5.25 billioneuros. Spain, beset by concerns about its banking system despite moveslast week to shore it up, raised 2.9 billion euros in 12- and18-month Treasury bills, with yields on the shorter paper up byaround a seventh from the last such sale in April. SEARCH FOR GROWTH As always, decision-making will rest first and foremost withGermany and Chancellor Angela Merkel, who has insisted that toughdebt-cutting programs are the primary route back to health for theeuro zone. Merkel's conservatives suffered a crushing defeat on Sunday in anelection in Germany's most populous state, a result which couldembolden the left opposition to step up attacks on her Europeanausterity policies. New French President Francois Hollande will visit Merkel in Berlinon Tuesday after he is inaugurated to press for a European growthstrategy. Germany has not opposed the idea but insists it cannot befunded by extra government spending that would drive debt back up. "There is no contradiction between fiscal consolidation andgrowth-oriented policies. To the contrary, they are mutuallyreinforcing and should be pursued entirely," Juncker said. "We agreed that consolidation efforts should be growth-friendlywith a focus on forward-looking expenditure like investment andinnovation and pro-growth projects, and should be anchored into acredible multi-annual framework. We'll come back to this at ournext meeting on June 21," he said. Investors are already looking to the ECB to return to the fray. Itcreated more than 1 trillion euros of three-year money in Decemberand February, and signaled afterwards that it had done all itcould. (Reporting by Renee Maltezou and George Georgiopoulos in Athens,Valentina Za in Milan, Paul Day in Madrid, Emelia Sithole-Matarisein London; writing by Mike Peacock; editing by Luke Baker). We are high quality suppliers, our products such as Floating Pop Display , China Floating Bottle Display for oversee buyer. 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