Deadlock in Greece government formation talks | WPN World People News

Attempts to cobble together a government in Greece appeared to be deadlocked again Friday as the leader of socialist Pasok party, Evangelos Venizelos, failed to get other parties on board.

Meanwhile, Germany told Greece Friday that it cannot afford to stray from austerity if it wants to get international bailout.

Venizelos is the third leader invited to try and form government after Sunday's election produced a hung parliament.

Venizelos has been holding talks with other party leaders, but no headway has been reported.

His party came a distant third at the polls with 41 out of the parliament's 300 seats.

He met conservative rival Antonis Samaras, whose New Democracy party came first in the election.

After Samaras failed to form a coalition, Alexis Tsipras, leader of the radical left party Syriza, which came second in the polls on its anti-austerity plank, was invited to try and form government. But he too failed, and now it is Venizelos' turn.

If the Pasok party fails to form government, the president is likely to summon all party leaders over the weekend for one last attempt at an emergency national salvation government. Or he could call for elections.

German Foreign Minister Guido Westerwelle told parliament that Germany wanted to help Greece stay in the euro zone but it would have to continue with spending cuts and tax hikes if it wanted the EU-IMF loans to stave off bankruptcy.

In another development, Michael Kemmer, general manager of the Association of German Banks, said the euro zone would survive if Greece had to leave.

"I believe the euro zone could cope with it (a Greek exit). The immediate consequences would be limited," Kemmer said.

Source: Europe News.Net