1. ITV Report

Greece set for new elections as coalition talks fail

A protester raises a Greek flag in front of the parliament in Athens. Photo: Reuters

Greece will hold new elections after party leaders failed to find an agreement on a coalition Government, pushing the country closer to bankruptcy and a future outside the eurozone.

An election on May 6 failed to give one party an overwhelming majority and left parliament split between those who support and oppose the €130 billion bailout deal which is deeply unpopular with Greeks for imposing deep wage, pension and public spending cuts.

A second election - set for mid-June - is expected to produce a similarly divided parliament, with opponents of the EU/IMF rescue package likely to consolidate their gains, raising the likelihood of an anti-bailout coalition that reneges on the deal keeping Greece afloat.

ITV Europe Correspondent Martin Geissler reports from on the anger for the electorate evident across the streets of Athens.

After the party leaders failed to agree on a Government of technocrats, Socialist leader Evangelos Venizelos said:

For God's sake, let's move towards something better and not something worse.

Our motherland can find its way, we will fight for it to find its way.

European leaders have said they will halt the aid if promises given in return for the bailout are not kept.

If so, Greece could go bankrupt as early as next month. Analysts say that this will almost certainly herald a Greek return to its drachma national currency.

There is now a considerable danger that Greece simply runs out of money next month - that it can't pay wages, can't run public transport, can't maintain infrastructure and that the country just descends into complete chaos.

– Jonathan Loynes, chief European economist at Capital Economics

Financial markets, worried that Greece's crisis could spread to bigger eurozone economies such as Spain and Italy, tumbled on the news.

Greeks are now increasingly worried their country is on a path of no return.

They should go to hell. Only God knows what's waiting for us now. I'm very scared about the future.

I don't think elections will solve anything because in a month we'll be in the same situation.

– Giouli Thomopoulou, 59, an unemployed office clerk

The country is finished. From now on, you can only live here if you're an animal.

– Panos Leonidas, 57, a travel agency employee

Greece is in the fifth year of a recession: meaning it's economy is experiencing a depression. On Monday depositors withdrew more €700 million (£557 million) from banks on Monday, according to the country's president.

Greek banks have seen a steady decline in deposits since the country's debt crisis began in 2009, as depositors have withdrawn cash and transferred funds to overseas banks.

In the past two years, deposit outflows have averaged between €2 billion and €3 billion per month, though in January they topped the €5 billion mark.