Greece's Left Coalition party leader told his pro-bailout counterparts today they must renounce support for the European Union-led rescue if there is to be any chance of forging a coalition.
Alexis Tsipras, who has been charged with forming a government, said he expected Antonis Samaras of New Democracy and Evangelos Venizelos, the former finance minister who leads the Pasok party, to send a letter to the EU revoking their written pledges to implement austerity measures by the time he meets them tomorrow to discuss forming a coalition.
"The bailout parties no longer have a majority in parliament to vote for measures that plunder the country," Mr Tsipras told reporters in Athens today after receiving the coalition-building mandate from president Karolos Papoulias. "There will be no €11 billion of additional austerity measures; 150,000 jobs will not be cut."
Political wrangling after last weekend’s inconclusive election has reignited European concerns over Greece's ability to hold to the terms of a second, €130 billion rescue.
Parliament is split down the middle on the two bailout deals negotiated since May 2010, as the country again risks exit from the euro. Greek stocks sank to their lowest level in about two decades amid the political instability. The euro was down 0.5 per cent to $1.2991.
New Democracy and Pasok, rivals until the country's crisis made them partners in a national government last year, are two deputies short of the 151 seats needed for a majority in the 300-seat chamber.
Mr Samaras gave up his bid to forge a government after almost six hours of talks in Athens yesterday.
New Democracy won the election with 19 per cent of the vote, gaining 108 seats; Syriza (Left Coalition) came second with 17 per cent, winning 52 seats; and Pasok placed third with 13 per cent, or 41 seats.
Mr Tsipras said he aimed to form a government with parties that would nationalise banks, place a moratorium on debt payments and cancel the bailout and measures such as labour reforms and pension cuts.
The message from the electorate was clear, he said. "Pasok and New Democracy should stop asking, in the name of national salvation, for a government that will implement the memorandum and loan accord," Mr Tsipras said. "This will not be a national salvation government but a salvation government for the bailout. That doesn't interest us."
Mr Tsipras also met the leader of Democratic Left, which won 19 seats in parliament and rejects austerity measures. He is also due to see the head of Independent Greeks, Panos Kammenos, who has 33 seats.
If Mr Tsipras fails to build a working majority, the onus on forming a government will pass to Pasok. Each mandate can last for three days.
If the process still fails to yield a coalition, Mr Papoulias must try to broker a government of national unity, the constitution says. If that fails, new elections will be held.
Agencies