Greece’s president has summoned the top three political parties’ leaders for power-sharing talks tomorrow following inconclusive elections in the country.
The leaders of the conservative, socialist and radical leftist parties, who all failed to form a government this week, will see Karolos Papoulias at 9pm Irish time and the president will subsequently meet with heads of smaller parties, including the neo-Nazi Golden Dawn, the president’s office said today.
No schedule was given for the follow-up meetings.
"The president will summon party leaders in a bid to form a government that will enjoy the backing of the parliamentary body that emerged from general elections on May 6," the president's office said.
If the parties cannot agree a compromise by Thursday, new elections will have to be called in June.
The country's international creditors have warned that no new loans will be forthcoming if it falters on structural reforms required to set the Greek economy in order after decades of overspending by the state.
However highly-indebted Greece is deeply torn over the tough austerity measures imposed as conditions for IMF/EU bailouts, and the crisis has raised the spectre of it defaulting and even leaving the 17-member eurozone.
German leaders warned yesterday that Athens could expect no more money without reforms and also suggested that the eurozone would cope if the cash-strapped country left the 17-member currency union.
Greece has already committed to finding in June another €11.5bn in savings over the next two years. It also needs to redeem €436 million in maturing debt on 15 May.
Brussels yesterday revised downwards its economic forecasts for the country at the epicentre of the eurozone debt crisis.
The European Commission said the economy is expected to contract by 4.7% this year and see no growth next year.
Fitch credit rating agency warned that the emergence of a Greek government "unwilling or unable to abide by the terms of the current EU/IMF programme would increase the risk of Greece leaving the eurozone".
"If they are required, the re-run elections will therefore be a critical event for both Greece and for the eurozone," it said in a note.
An opinion poll published yesterday showed that Syriza could even emerge as the victor if new elections are held in June.
