World News

Greek government talks end without deal

The Greek government teeters on the brink of new nationwide elections as another round of talks between the president and the heads of five political parties has failed to produce results.

Greece’s President Karolos Papoulias met with five political party leaders for a third-day on Tuesday in a bid to hammer out a new government, although failing to reach an agreement as the political impasse now engrosses the country.

Leader of the socialist PASOK party, Evangelos Venizelos, acknowledged the talks have failed, stating that the country will hold new elections in June to usher in a new government.

"We shouldn't have reached this point; we are forced to go (to elections). Let's go united, in the best way, to safeguard Greeks. Let's move towards something better and, for God's sake, let's not move towards something worse," Venizelos said.

Greek leader of Coalition of the Radical Left party, SYRIZA, Alexis Tsipras, expressed his frustration in the talks, saying that "the parties of the bailout agreement, specifically Mr. Samaras and Mr. Venizelos, faithful in their commitments to Ms. Merkel and Ms. Largarde, refused to accept our proposals.”

“And the only thing they did in essence for the last eight days is to present the dilemma that either we have the bailout or we have elections," Tsipras added. The SYRIZA party, which came second in the May 6th election, had opposed to join a coalition with pro-austerity parties.

Meanwhile, the president had announced that he will form a caretaker government as the country prepares for the new election.

Greece has been without a government since last week's elections failed to give a party a major win, which shook financial markets and pushed experts into questioning Greece's ability to stay in the eurozone.

Meanwhile, bond yields for the country's three-month bonds reached 4.34 percent over the political impasse. Latest figures show that the Greek economy has shrunk 6.2 percent in the first quarter of 2012, raising further doubts about the country's financial stability.

Greeks are angry at two years of harsh austerity measures imposed in return for bailouts from the International Monetary Fund and the European Union.

Press TV

Wednesday 16-05-2012
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