Crisis-hit Greece edges towards a new election

Monday 14 May 2012

Critical last-ditch talks to form a coalition government in crisis-struck Greece floundered once more yesterday, leading the country one step closer to new elections, although the socialist party leader said he retained "existing but limited" optimism for a deal.

Custom byline text:

ATHENS

The political uncertainty has alarmed international creditors who have given Greece billions of euros in bailout loans over the past two years, and has thrown the country's continued presence in the European Union's joint currency into serious doubt.

President Karolos Papoulias convened the heads of the parties who finished in the top three spots in last Sunday's inconclusive elections in an ultimate effort to broker an agreement after a week of talks led to deadlock.The meeting ended without a solution, but the process continued last night with the President meeting individually with the leaders of smaller parties that made it into Parliament. Voters furious at the handling of Greece's financial crisis and two years of harsh austerity measures taken in return for billions of euros in international bailout loans punished the formerly dominant socialist Pasok and conservative New Democracy parties in the elections. Support for both parties crumbled to the lowest point in decades, while the Radical Left Coalition, or Syriza, made big gains to finish in second place after campaigning on an anti-bailout platform.The Pasok and New Democracy leaders could form a coalition with the smaller Democratic Left party of Fotis Kouvelis. Combined, they would have 168 seats in the 300-member parliament. All three insist any power- sharing deal must include Syriza, led by 38-year-old Alexis Tsipras, given its strong showing at the ballot box.Mr Tsipras, however, insists he cannot join or even lend his support to a government that will continue implementing the terms of Greece's international bailout.In return for €240 billion (£192bn) in rescue loans from the European Union and International Monetary Fund, Greece has imposed severe spending cuts, including slashing pensions and salaries in the public sector, and repeated rounds of tax increases. The measures have left Greece mired in a fifth year of deep recession, with unemployment spiralling above 21%.Mr Tsipras insists the terms of the bailout must be cancelled. Pasok head Evangelos Venizelos and conservative leader Antonis Samaras say that position is irresponsible and will force Greece out of the euro.Although yesterday's meeting convened by the President with the three top party leaders was inconclusive, Mr Venizelos said: "I retain some limited but existing optimism that a government can be formed".A poll published by To Vima newspaper indicated Syriza would come first in new elections with 20.5% of the vote – well ahead of New Democracy. Although it would not be enough to form a government, it would put him in the dominant position to form a coalition with smaller anti-bailout parties.

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis. If you're a relatively new user then your comments will be reviewed before publication and if we know you well then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules, which are available here.

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

Crisis-hit Greece edges towards a new election

Commenting & Moderation

MOST READ

SPONSORED LINKS

MOST COMMENTED