Greece: New elections ahead as government talks collapse

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Greece: New elections ahead as government talks collapse

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Greece is going back to the polls after an umpteenth round of talks failed to reach a deal to form a new government.

The country has been politically paralysed for over a week since an election split support between parties for and against its international bailout.

With rivals unable to settle their differences over austerity, Greece now moves closer to bankruptcy and an exit from the euro zone.

President Karolos Papoulias made a last-ditch proposal to form a government of technocrats, stressing the “danger” he said the country is in. However that was not enough to bridge the gap.

A caretaker administration will now be formed ahead of a new vote, expected in mid-June.

Polls show the leftist SYRIZA party, which opposes the austerity-linked bailout and came second in the earlier election, is now on course to win. European leaders say that if Athens does reject the bailout, they will cut off its funding.