Greek parties fail to form a government

Greek Socialist Leader (l), seen here with Greek President Karolos Papoulias said he retained "existing but limited' optimism for a deal Credit: AP Photo/Aris Messinis

Critical last-ditch talks to form a coalition government in crisis-struck Greece floundered once more today, leading the country one step closer to new elections.

Greek President Karolos Papoulias convened the heads of the parties that came in the top three spots in last Sunday's inconclusive elections, in an ultimate effort to broker an agreement after a week of talks led to deadlock.

The meeting ended without a solution, but the process continued this evening with the president meeting individually with the leaders of smaller parties that made it into parliament.

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