Rudderless Greece was still seeking a government yesterday nearly a week after voters rejected the austerity measures demanded in return for an international bailout. While analysts and allies have warned Athens that its future in the eurozone is hanging in the balance, its politicians have been unable to agree a coalition and a fresh election seems the most likely outcome.
A day that began with the headline "A ray of hope'' in the popular daily Ta Nea ended with socialist Pasok, the third party to attempt to form a unity government this week, also unable to find partners. The hope had been that the moderate Democratic Left might join Pasok and its erstwhile coalition partner New Democracy to cobble together the necessary majority.
However, the Democratic Left leader, Fotis Kouvelis, ruled out a three-way alliance and said that a government without the Radical Left Coalition, Syriza, who came a surprise second last Sunday was a non-starter.
Greece's main parties, Pasok and New Democracy, were punished at the ballot box for their role in leading the country into the financial crisis and their co-operation with international creditors' demands for cuts and reforms. Greece is in its fifth year of recession with unemployment of nearly 22 percent.
Greek leaders have come under enormous pressure from European partners and international creditors determined that it should stick to the terms of its A130bn second bailout. While talks have dragged on, major banks have issued a stream of reports discussing ways in which the eurozone could weather a Greek exit - now being labelled a "Grexit''.
