Greek Leaders Meet on Election After European Stocks Drop

Greek leaders seek agreement today on an interim government that will schedule new elections as early as June 10, after government-formation talks collapsed amid concern the country will abandon the euro common currency. “The country is once again headed to elections in a few days under adverse conditions,” said Evangelos Venizelos, the head of the socialist Pasok party. “The Greek people told us they didn’t want elections but a coalition government, that they want Greece in the euro.” The new voting will follow inconclusive May 6 elections that pushed a political party opposed to Greece’s international bailout into second place. Public opinion polls say that party, Syriza, may come in first next time, complicating Greece’s efforts to avoid running out of cash by early July. President Karolos Papoulias failed to broker a governing coalition in meetings yesterday with Venizelos and other party leaders in Athens. The euro plummeted to an almost four-month low, while the Stoxx Europe 600 Index fell to its lowest level since December. The standoff has reignited concern the country will renege on pledges to cut spending as required by the terms of its two bailouts worth 240 billion euros ($306 billion) negotiated since May 2010, and, ultimately, leave the 17-nation euro area. Elections must be held within four weeks at the latest, meaning the vote would probably be on June 10 or June 17.