Coalition deal for crisis-torn Greece rejected

Following 40-minute talks with conservative leader Antonis Samaras, Mr Tsipras said the two parties’ views were diametrically opposed. He demanded the cancellation of austerity measures many blame for deepening economic woes.

Mr Samaras, who was given three days from yesterday in which to build a coalition or pass on the mandate to Mr Tsipras, was last night meeting the head of the third party, the socialist PASOK.

Mr Tsipras’s refusal to co-operate with the conservatives, while anticipated, makes it even less likely that Mr Samaras will be able to form a strong enough coalition. It also increases the possibility that Greece will be forced to hold repeat elections in mid-June.

“The campaign positions of Mr Samaras are at the opposite end of the alternative proposals of a left-wing government,” said Mr Tsipras, who strongly opposes Greece’s bailout commitments.

“There can be no government of national salvation, as (Samaras) has named it, because his signatures and commitments to the loan agreement do not constitute salvation but a tragedy for the people and the country.”

Sunday’s vote saw parties backing the draconian international rescue package lose their majority in parliament – raising the chances of a possible Greek exit from the common euro currency.

The uncertainty weighed on markets across Europe, with the Athens exchange closing 6.7 per cent down.

Official results showed conservative New Democracy came first with 18.85 per cent and 108 of Parliament’s 300 seats.

Mr Samaras, who backs Greece’s bailout commitments for austerity, has called for some changes to the bailout plan.

“I understand the rage of the people, but our party will not leave Greece ungoverned,” Mr Samaras said.

But even with the support of the only other clearly pro-bailout party elected, Socialist PASOK, New Democracy would fall two seats short of a governing majority.

If the deadlock does not ease, Greece faces new elections under a caretaker government in mid-June, about the time it has to detail new drastic austerity measures worth 14.5 billion euro (£11.7bn) for 2013-14.

In June, Athens is also due to receive a 30 billion euro (£24bn) instalment of its rescue loans from the other countries in the 17-strong eurozone and the International Monetary Fund. If aid is cut off, analysts at Commerzbank estimated the country would have trouble paying its debts by autumn.

German Chancellor Angela Merkel said Athens would still be expected to live up to its agreements. “Of course the most important thing is that the programmes we agreed with Greece are continued,” she said.

Her remarks were echoed by a European Commission spokesman, Amadeu Altafaj Tardio, who stressed the need for “full and timely implementation” of Greece’s agreement with its international creditors and underlined that “solidarity is a two-way street”.

Comment: Page 10.

New era: Page 11.