Greek coalition talks to enter 3rd day

 

Xinhua, June 20, 2012

A second day of talks between pro-bailout parties for the formation of a coalition government ended with no result on Tuesday. However, hopes remain that an agreement could be reached on Wednesday.

Leaders and senior officials from the conservative New Democracy party of Antonis Samaras that won the first place in Sunday's general elections, but not enough votes to form a government on its own, the socialist PASOK party and the Democratic Left talked of "productive" consultations in statements to local media.

"A government could be formed Wednesday," PASOK's leader Evangelos Venizelos said on Tuesday evening, as officials of the three parties were discussing the policy platform for the new government and will continue Wednesday.

Amongst thorny issues, according to sources, were Democratic Left's demand that a law introducing the reduction of the minimum wage and the abolition of collective labor agreements, should be annulled.

As partners in the previous interim coalition government of Lucas Papademos, ND and PASOK voted in spring in favor of the law which is linked to the bailout deals with EU and International Monetary Fund lenders.

The line up of the new cabinet is expected to be discussed in addition on Wednesday, before Samaras, Venizelos and Democratic Left chief Fotis Kouvelis meet for a second time since Monday to seal a deal, according to media reports.

Until Tuesday night, Venizelos and Kouvelis appeared opposed to the participation of high profile party members or former ministers in the new government, opting for a team of technocrats.

Time is pressing, since under the Greek Constitution, if they will not find common ground to form a government, Samaras should return Thursday the mandate he received from Greek President Karolos Papoulias on Monday.

Alexis Tsipras, leader of the anti-bailout Radical Left SYRIZA coalition that ranked second in Sunday's polls and declined to join a pro-bailout coalition, has said he will not take up the mandate to try to form a government of the Left this time, as he did after the first inconclusive elections in May.

In the case of an impasse, the country could be led to a third round of polls. The prospect has caused uneasiness in Greece and abroad, since political instability could add to economic woes and derail all efforts made over the past two years to avert a disorderly bankruptcy and a Greek exit from the eurozone that could cause turmoil in international markets.

If the coalition talks will end successfully on Wednesday, the new government will have a 179-seat majority in the 300-member strong parliament (ND secured 129 seats) to push through the necessary measures to tackle the acute debt crisis.