ATHENS - Greek Socialist leader Evangelos Venizelos said on Monday he was not optimistic that a coalition government could be formed a week after an inconclusive election but urged all parties participating in talks to fight until a solution was reached.

"Things are very difficult. I'm not optimistic," Venizelos said after a second day of talks between party leaders and the country's president foundered over disagreement about an international bailout keeping the country afloat.

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President Karolos Papoulias has summoned all parties in parliament apart from the ultra right to a third day of talks on Tuesday.