Greek political leaders today ignored a final plea from the president to form a coalition government to avert a repeat election and pushed the debt-stricken nation closer to bankruptcy and a possible exit from the euro zone.
Leaders of the three biggest parties met at the presidential mansion for a final attempt to bridge their differences, but the talks quickly hit an impasse as they traded accusations on a deeply unpopular bailout package tied to harsh spending cuts.
Conservative leader Antonis Samaras, who finished first in last week's election, pinned the blame on the far-left Syriza party, which flatly rules out backing a pro-bailout coalition with Samaras's New Democracy and Socialist Pasok parties.
"They are not asking for agreement, they are asking us to be their partners in crime and we will not be their accomplices," said Alexis Tsipras, who has become an overnight sensation since leading Syriza to a surprise second place in the vote.
The other leader at the morning talks - Socialist leader Evangelos Venizelos - said he was holding on to hopes that a deal could still be salvaged, but warned time was running out.
"Despite the impasse at the meeting we had with the president, I hold on to some limited optimism that a government can be formed," said Mr Venizelos, whose Pasok party finished a humiliating third in the election, a shadow of its former might. "The moment of truth has come. We either form a government or we go to elections."
Both New Democracy and Pasok - which have taken turns in ruling Greece for nearly four decades and jointly negotiated a bailout that requires deep cuts in wages, pensions and spending - are eager to avoid facing the voters again.
Polls since the election show the balance of power tipping even further towards opponents of the bailout, who were divided among several small parties but now appear to be rallying behind Mr Tsipras (37), a former Communist student leader.
If the vote is repeated, Mr Tsipras's Syriza party is tipped to place first, winning an automatic extra 50 seats at the expense of Mr Samaras.
A week of efforts to put together a government since an inconclusive election failed because neither the pro- nor the anti-bailout camp had enough seats to rule in the hung parliament. Neither side has been willing to compromise, further exasperating voters hard pressed by tax hikes and wage cuts.
EU leaders have warned that without a government that backs the €130 billion rescue plan agreed in March, Greece would stop getting aid and could find itself pushed out of the euro.
European bankers yesterday warned Greece of the consequences of leaving the euro.
Greece will not receive any more financial aid if it does not stick to the agreed bailout deal, European Central Bank policymaker and head of Germany's Bundesbank Jens Weidmann was quoted as saying.
He also told Sueddeutsche Zeitung in an interview an exit from the euro zone would have a bigger impact on Greece than on the rest of the bloc."For Greece the consequences would be much more grave than for the rest of the euro zone," he said. "I think it is too simple to think Greece's problems would be solved by leaving the euro area.
"If Athens does not stand by its word, then that's a democratic decision. The result is that there is no more basis for further financial aid," Mr Weidmann said, echoing similar comments from German foreign minister Guido Westerwelle."
Reuters