ATHENS — Political leaders in Greece on Friday failed to find common ground on austerity measures needed to avert a new debt crisis, party chiefs who attended the emergency talks said.
"Sadly, some people have placed their posts above Greece," George Karatzaferis, leader of the nationalist Laos party, told reporters after the meeting between the country's main parties and President Carolos Papoulias.
Communist leader Aleka Papariga said her party had also "reached no agreement on issues" set by Prime Minister George Papandreou.
But Papariga added that Papandreou, who has a six-seat majority in parliament, had said nothing about calling early elections.
The Athens stock exchange was down 2.7 percent shortly before closing as the news broke after the almost four-hour meeting.
The semi-state Athens News Agency said Papandreou later told the president that he would "proceed alone," without calling early elections.
Speculation was rife on Friday that the prime minister would carry out a reshuffle and include technocrats approved by other parties in a crisis cabinet.
Papandreou sought to build consensus over an unpopular austerity programme agreed with the European Union and the International Monetary Fund last year after they rescued the country from bankruptcy with a huge bailout loan.
His government is currently locked in tough negotiations with the EU, the IMF and the European Central Bank over the release of a 12-billion-euro loan instalment that Greece has warned it needs to remain solvent from July.
To clinch the support of the three creditors, Papandreou this month unveiled a four-year economic adjustment programme that includes a hefty tax hike and a 50-billion-euro state asset privatisation drive.
The opposition parties have mostly refused to support the government in its quest to cut spending by trimming an overblown civil service and the sweeping privatisation drive announced this week has attracted even stronger protests.
Workers at various state entities earmarked for full or partial sale have begun mobilising and unions are planning a general strike in June, the third this year against the austerity cuts.
The Friday talks were held after the IMF warned Thursday that it could not extend further bailout funds to Greece unless the government could deliver on its commitments to reduce debt.
The European Union's economic affairs commissioner Olli Rehn last week publicly wondered why Greek politicians were unable to reach agreement, making a negative comparison with Ireland and Portugal where opposition parties have found it easier to cooperate on similar loan bailouts.
"If it is possible for Portugal and Ireland, how come not in Greece?" Rehn said as he called on Greek parties to set aside their differences with matters of "national destiny" and "fundamental national responsibility" at stake.
Copyright © 2011 AFP. All rights reserved.
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