16/05/2012 10:03 BST | Updated 16/05/2012 10:03 BST

Greece To Hold Fresh Elections On June 17 Following Political Stalemate

Greece is to hold fresh parliamentary elections on June 17 after talks aimed at forming a ruling coalition collapsed on Tuesday.

The protracted deadlock and the prospect of an anti-austerity party winning the new vote hammered Europe's markets on fears that the debt-crippled country could be forced out of the European single currency.

Council of State president Panagiotis Pikramenos will head the caretaker government until the election.

The election date was announced after party leaders met Greek President Karolos Papoulias on Wednesday.