Greece might go in for fresh elections
15 May 2012 8:00 AM GMT
Greece on Monday faced the prospect of fresh polls after failing to narrow divisions over a painful EU-IMF bailout accord as EU partners pressed for a coalition government deal to avoid its exit from the euro.
Party leaders hosted by President Carolos Papoulias were to resume talks at 2130 IST as eurozone finance ministers meet in Brussels, where officials insist Greece must stick to the tough austerity measures it agreed to in return for the debt rescue.
If Athens does not, and the debt accord lapses, it appears that eurozone leaders are reluctantly prepared for Greece to leave the 17-nation bloc despite fears that that outcome could destabilise the whole euro project.
Germany, the eurozone's paymaster and biggest economy, said on Monday that forming a government was the most important consideration but at the same time stressed that there could be no relaxation in the bailout terms for Greece.
'For the German government, the most important thing is that the political forces succeed in consolidating themselves into a workable majority, a workable government,' German government spokesman Steffen Seibert said in Berlin.
Head of the European Commission Jose Manuel Barroso meanwhile still 'hopes and wishes' that Greece can remain in the eurozone.
Party leaders hosted by President Carolos Papoulias were to resume talks at 2130 IST as eurozone finance ministers meet in Brussels, where officials insist Greece must stick to the tough austerity measures it agreed to in return for the debt rescue.
If Athens does not, and the debt accord lapses, it appears that eurozone leaders are reluctantly prepared for Greece to leave the 17-nation bloc despite fears that that outcome could destabilise the whole euro project.
Germany, the eurozone's paymaster and biggest economy, said on Monday that forming a government was the most important consideration but at the same time stressed that there could be no relaxation in the bailout terms for Greece.
'For the German government, the most important thing is that the political forces succeed in consolidating themselves into a workable majority, a workable government,' German government spokesman Steffen Seibert said in Berlin.
Head of the European Commission Jose Manuel Barroso meanwhile still 'hopes and wishes' that Greece can remain in the eurozone.
Next Story
