Olga Gerovasili

Greece: Prospect of new election grows, markets hit

The government is relying on opposition party support for approval in parliament of new austerity measures demanded by bailout lenders, following a revolt by nearly one fourth of its own lawmakers.

Government spokeswoman Olga Gerovasili said the government would not form a national unity government and described early elections as "likely."

"A solution will be found, since the country needs a strong government," Gerovasili told private Skai television. "(Early) elections are likely but that doesn't mean we will be dealing today with when they will take place."