Greece has appointed a senior judge as prime minister of a caretaker government that will lead the country to repeat elections next month.

Senior judge Panagiotis Pikramenos was named Greece’s caretaker prime minister today, and new elections will be held on June 17, according to reports on state TV.

Greece’s president is to convene the crisis-struck country’s political leaders again today, this time to appoint a caretaker government that will lead the country into new elections next month.

Greece's political leaders will meet the country's president today as he tries to put together a caretaker government.

Markets suffered further falls today after Greece failed to patch together a coalition government, triggering another election next month.

Plans for fresh elections in crisis-torn Greece derailed markets today as relief that the eurozone had dodged recession proved short-lived.

Greece’s president is seeking to end a nine-day deadlock over forming a new government by meeting with five political party leaders.

Greek leftists rejected a last-ditch proposal by the head of state yesterday to put technocrats in charge of the country, as financial markets slid on speculation that political turmoil would force Athens out of the eurozone.

The continued political stalemate in Greece triggered more heavy falls for world markets today as party leaders failed to make progress forming a coalition government.

World markets suffered heavy losses today as Greek party leaders struggled to reach an agreement to form a coalition government nine days after an election was held.

Efforts to form a new Government in Greece have received a fresh blow after the leader of the moderate Democratic Left party said he would not take part in a coalition without the more radical leftist Syriza party.

Greek political leaders ignored a final plea from the president to form a coalition government to avert a repeat election, pushing the debt-stricken nation closer to bankruptcy and a possible exit from the eurozone.

A meeting convened by Greek President Karolos Papoulias with three main party leaders to try to break the deadlock and broker a coalition government deal has ended.

Greece’s president will meet political party leaders today in a last-chance effort to broker a deal for a coalition government and avoid another general election.

Efforts to form a coalition have failed, Greece’s socialist leader and former finance minister said last night.

Hopes have risen slightly that Greece can end its post-electoral deadlock without having to hold new elections, as international partners warned that Athens must stick to its austerity programme or abandon the euro.

Greek power-sharing talks entered a third and final round today, as parties in the crisis-hit country struggled to hammer out a coalition deal after general elections produced no outright winner.

Greece sank deeper into crisis yesterday when the leftist candidate for prime minister set conditions for a coalition which the biggest party said would destroy the country.

Greece faces weeks of financial turmoil after voters angry at crippling income cuts punished mainstream politicians, let a far-right extremist group into Parliament and gave no party enough votes to govern alone.

The EU has sought to defuse the row between Greece and some eurozone countries over its bailout bid.

Former European Central Bank vice-president Lucas Papademos today joined Greek political leaders at power-sharing talks to form a new government, in a strong indication that he is being lined up to be the country’s new prime minister.

A DEAL on forming a Greek national unity government collapsed last night as the country headed towards an economic abyss, hours after outgoing prime minister George Papandreou said he was handing over to a coalition that does not exist.

GREECE’S prime minister and the leader of the main opposition party last night reached initial agreement on forming an interim government.

GREEK Prime Minister George Papandreou agreed to step down as premier to allow the creation of a national unity government that will secure international financing for the country and avert a default.

Greece’s embattled prime minister and the head of the main opposition party reached an initial agreement tonight to form an interim government that will ensure the country’s new European debt deal and then lead Greece to early elections, the president’s office said.

Ministers say Greece’s embattled prime minister is waiting for the country’s president to host a meeting between him and the head of the opposition.

Talks are under way on the formation of a temporary coalition government in Greece to ensure the country does not go bankrupt in the next few weeks, a spokesman for the ruling administration has claimed.

Embattled Greek prime minister George Papandreou is now preparing to start talks to try to form a four-month coalition government, aimed at securing continued rescue funds for the near-bankrupt eurozone country.

ITALIAN Prime Minister Silvio Berlusconi has rejected growing speculation that his fragile centre-right coalition will collapse soon, promising new reforms as growing market pressure pushed Italy’s borrowing costs to a new record.

Thousands of anti-austerity protesters in Greece’s second largest city have forced the cancellation of an annual military parade commemorating the nation’s entry into the Second World War.

More workers went on strike in Greece today as the build-up continued to a huge demonstration on Thursday when parliament votes on crucial austerity measures.

Austerity-weary Greeks lashed out against more tax rises and pension cuts with a new round of strikes today.

Greece can only avoid bankruptcy by taking the joint EU-IMF rescue package, its government insisted today as it tried to push the measure through parliament.

The Greek parliament today re-elected president Karolos Papoulias to a second five-year term in office.

Greece’s newly-elected socialist government won a vote of confidence in its programme.

Greece braced itself for more violence today as it prepared for the funeral of the youth whose shooting by police sparked the worst riots in decades.

Police fired tear gas at rioting youths smashing up shops today in the third day of rioting sparked by their shooting dead an Athens teenager.

Greece has finally taken possession of a chunk of the Elgin Marbles, and now holds renewed hopes of regaining the rest.

Cyprus’ new president pledged to open new crossing points on the divided island and to work towards demilitarising it under a possible reunification deal.

Greece’s president today described the fires ravaging his country’s forests as a national catastrophe, as thousands of firefighters – hundreds of them brought in from other countries – fought to control blazes that have burned nearly 500,000 acres.

Russian President Vladimir Putin today said that tests of new Russian missiles were a due response to the planned deployment of US missile defence installations and other forces in Europe.