Greece’s socialist leader Evangelos Venizelos is facing the daunting task of forming a viable government, a day after a bid by a radical Left-wing anti-austerity party ended in failure.
The eurozone will give Greece €4.2bn today in bailout loans
Power-sharing talks will enter a final third round later on Thursday, but given that all the main protagonists in Greece’s political drama have already held two unproductive meetings this week, it is almost certain a deal will not be reached.
The head of state would then summon the leaders of all seven parties who won seats in Sunday’s election in an improbable bid to form a national unity government.
Much more likely is that a caretaker government would be sworn in next week under a supreme court judge to oversee another election, with June 17 as the most likely date.
The combination of political stalemate and denunciations of the country’s 130 billion euro bail-out by Alexis Tsipras, leader of the Syriza party, now the second largest in parliament, have alarmed European and German leaders.
There have been warnings that future loan payments to Greece could be withheld or that the country could be left with no obligation but to leave the euro if it reneges on its commitments to cut spending and raise taxes.
“If Greece wants to remain in the euro zone, there is no better solution than the path it has already taken,” said Wolfgang Schaeuble, the German finance minister, on Wednesday.
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- Greek politicians still struggling to form government (latimesblogs.latimes.com)
- Greek socialist leader: No coalition deal yet (newsday.com)
- Greece Conservative Samaras Says Greeks Favor Staying In Euro (forexlive.com)
- Keep cutting or EU aid stops, Greeks told (telegraph.co.uk)
- Left-wing Greek leader gives up on forming a government (latimesblogs.latimes.com)