Greece bailout: Prospect of early election grows as markets dive

Greece's left-wing government has conceded that dissent within the ruling party was likely to force an early election, while markets fell again under the weight of plummeting bank shares. 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 MPs. 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," Ms Gerovasili said. "(Early) elections are likely but that doesn't mean we will be dealing today with when they will take place." Amid the uncertainty, the main stock index fell another two per cent in afternoon trading, the second day the market has been open following a five-week closure. Most shares traded higher but banks tumbled lower, once again hitting the 30 per cent lower trading limit. The overall index plummeted 16.2 per cent on Monday. Greece's economy is reeling from the impact of limits on money withdrawals and transfers that the government imposed on June 29 to avoid a collapse...