Coalition talks stall in Greece

ATHENS — Greek political party leaders emerged Sunday from emergency cabinet talks with no breakthrough in sight, raising the prospect of new elections that could scupper reforms and force the country out of the eurozone.

President Carolos Papoulias initially met for 90 minutes with the heads of the three parties that topped last Sunday’s inconclusive election — conservative New Democracy, socialist Pasok and radical left Syriza, before holding discussions with smaller parties.

But after the full day of last-ditch meetings, the small Democratic Left party, viewed as the most likely candidate for a coalition government with New Democracy and Pasok, said no government had emerged.

Talks will reopen today, said state TV, as Greece grapples with mounting threats of a loan freeze should Athens falter on promised structural reforms.

If a cabinet can’t be formed by Thursday, when parliament convenes, new elections will have to be called in June.

According to Greek media, the state has enough cash to pay salaries and pensions until late June. Greece’s European peers have threatened to cut off further loans if promised reforms stall.

Fotis Kouvelis, whose Democratic Left party was seen as the most likely candidate for a coalition government between the mainstream conservative and socialist parties, said his party wants any coalition government to “immediately” cancel legislation that slashed the minimum wage and facilitated layoffs, and start to “disengage” Greece from the unpopular EU-IMF rescue package.