Coalition talks fails, Greece to have new elections | WPN World People News

Greece headed for fresh elections after talks to form a coalition government failed, putting a question mark on the country's future in the Eurozone.

A spokesperson for President Karolos Papoulias said that new elections would be held, likely in mid-June. A caretaker government is to be formed on Wednesday.

The announcement for fresh polls came after talks between the president and leaders of different parties failed. The anti-austerity radical left party Syriza refused to take part in the discussions.

Emerging from the talks, Greek socialist leader Evangelos Venizelos said: "We are going again towards elections, in a few days, under very bad conditions."

Left-wing leader Fotis Kouvelis said, "I did everything I could to avoid new elections. From the very first moment some parties had chosen to go for new elections."

The leaders of the main political parties had been trying to form a coalition since elections on May 6 left no party with a clear majority.

European leaders have threatened to stop the aid if Greece does not stick to the promises it made for the bailout.

"There is now a considerable danger that Greece simply runs out of money next month - that it can't pay wages, can't run public transport, can't maintain infrastructure and that the country just descends into complete chaos," said Jonathan Loynes, chief European economist at Capital Economics, which predicts Greece could leave the currency bloc this year, according to Reuters.

The turmoil in Athens was felt among other troubled members of the 17-nation European single currency area. The euro slipped below $1.28, while Greek stocks fell five per cent.

The Syriza party is widely expected to win the June polls.

Source: Europe News.Net