Moderate party the Democratic Left have refused to be part of a coalition with pro-bailout and pro-austerity parties without the more radical left wing party Syriza.

Fotis Kouvelis, head of the Democratic Left said that “no unity government can emerge” from current talks, adding, "A government without Syriza would not have the necessary popular and parliamentary backing.”

Despite this, the Greek President Papoulias has urged the four main parties in Greece, which also includes centre-right party New Democracy and the Socialist Pasok, to try and reach a deal to avoid elections.

If one is not reached, then the result could be Greece leaving the Euro.

Many spectators are concerned that left wing parties opposing austerity and bailouts from other EU countries could do well in a second round of elections, with no sign of European leaders being willing to negotiate a new deal.

European Commission boss Jose Manuel Barroso warned that they would be thrown out of the Euro if they did not stick to the terms of previous agreements.

European finance ministers will meet later today in Brussels to discuss the crisis.