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Greek
leader seeks 'salvation' government
Conservative
party claims to have preliminary agreement with socialists to form
"government of national salvation".
The New
Democracy conservatives who came first in the elections said they had struck a
preliminary agreement with the socialists PASOK to form "a government of
national salvation" to rescue Greece
PASOK has
voiced hope for a deal later on Tuesday but insists that the new government
should include other parties including the leftist Syriza, which has already
ruled out taking part in any New Democracy-led coalition.
A brief
relief rally on international financial markets after Sunday's Greek vote
quickly fizzled out as it became clear that Antonis Samaras's New Democracy had
failed to win a convincing popular mandate to implement the deep spending cuts
and tax increases demanded by the European Union and the IMF.
Syriza and
a host of smaller parties opposed to the punishing conditions attached to the
$164.12bn bailout won around half the votes cast, though fewer seats because
the electoral system rewards the first placed party disproportionately.
Samaras
received a mandate to form a coalition government from the president on Monday,
and said the country would meet its bailout commitments.
But he
said: "We will simultaneously have to make some necessary amendments to
the bailout agreement, in order to relieve the people of crippling unemployment
and huge hardships."
Deep-seated
divisions
Al
Jazeera's Andrew Simmons, reporting from Athens
"The
real worry is that if there's a weak government, Syriza is going to weigh in
and bring it down," he said.
He said
that a government would likely be formed and that there was unlikely to be a
repeat of the standoff that followed the May elections.
enough cash
to last a few weeks [AFP]
Evangelos
Venizelos, PASOK head and a former finance minister, finished in the election
behind Syriza.
But his 33
seats in the 300-member parliament mean he could form a government with New
Democracy, which gained 129 seats.
Syriza has
refused to join the other two parties in a government, saying it will not
cooperate with any group that insists on implementing the harsh austerity
measures taken in return for Greece
Venizelos,
however, insisted on a broad coalition.
"The
most crucial thing for us right now is to achieve the greatest possible range
of consensus, and this must happen by tomorrow night at the latest," he
said after meeting with New Democracy head Antonis Samaras, who as election
winner has the first go at trying to form a government.
Venizelos
criticized Syriza chief Alexis Tsipras for his refusal to join in governing Greece
"You
can't have some people choosing the easy position of being in opposition and
lying in wait for the government to fail - or rather trying to create the
conditions for the government, that is the country, to fail," Venizelos
said.
Mixed mood
On the
streets of Athens
"The
election result isn't strong enough to put people's minds at ease," said
sandwich shop owner Mary Moutafidis, 57. "They still have to agree to form
a government."
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Protests
regularly choke the centre of Athens
During the
election campaign, Samaras called for cuts in taxes, rises in unemployment
benefits, pension rises and two more years to meet fiscal targets.
But Germany Greece
Chancellor
Angela Merkel, speaking at a meeting of G20 leaders in Mexico Greece Athens
Samaras
voted in 2010 against the first 110bn euro rescue because he thought it was too
harsh. He now says Greece
The small
Democratic Left party indicated it would also be ready to support Samaras if
the bailout deal could be softened. Samaras and Venizelos began talks at 15:00 GMT .
Source: Al
Jazeera and agencies
