Greece is heading for a fresh general election after the second round of talks between political parties to form a coalition government failed to reach agreement on Tuesday.
"Unfortunately, the country is heading again toward elections in a few days, under very bad conditions," the socialist PASOK party leader Evangelos Venizelos told reporters after the talks failed to break the deadlock.
A statement from the office of President Karolos Papoulias confirmed it.
The presidential statement said a meeting of the party leaders will be held on Wednesday for an agreement on forming a caretaker government, which is mandatory under the Greek constitution, to lead the country to fresh elections.
Elections are expected to take place within a month, which is beyond the deadline for a new government to come to power if the debt-ridden country is to get the next installment of bail out fund from the European Union and International Monetary Fund.
No parties were able to win clear majority in the parliamentary elections held on May 6.
The conservative center-right New Democracy and the socialist PASOK parties, which have been partners in the coalition government since last November, lost their parliamentary majority.
Left-wing coalition Syriza, which opposes the government's austerity measures for securing a bailout, won 16.7 percent of votes, making it eligible for one sixth representation in the 300-member parliament.
Recent polls suggest a new election could deliver an equally fragmented parliament, with Syriza becoming the largest party. Syriza wants to renegotiate the bailout package, a demand already rejected by German Finance Minister Wolfgang Schaeuble. Greece faces the risk of failing to receive the loan amount, as the international lenders have warned that they won't discuss further aid disbursements until a new government is formed.
The President had invited the heads of Greece's five largest political parties-- New Democracy, PASOK, Democratic Left, Syriza and right-wing Independent Greeks - to Tuesday's talks on the prospect of forming a coalition government that is crucial to keep Greece in the euro.
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