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.

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.

Final decisions on the Greek bailout should be taken on Monday after Greece delivered on further cuts and political assurances at a special teleconference between eurozone finance ministers last night.

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.

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.

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

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

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.