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Radical left leader Alexis Tsipras says he will not join or support a pro-bailout coalition government.
A coalition of leftist parties is trying to form a cabinet that will reject austerity measures.
Credit agency S&P further downgrades Greece as Germany approves $175bn bailout for debt-stricken eurozone nation.
Move comes despite domestic pressure on Chancellor Merkel to stop funding Greece and other indebted eurozone economies.
Legislators must now debate further austerity cuts required to get an additional $172bn in loans to avoid bankruptcy.
Setback comes as country's parliament debates emergency legislation to implement a eurozone rescue package.
Move to eliminate 15,000 civil service jobs signals major shift in policy in run-up to crucial coalition meeting.
Marathon negotiations to continue into Monday as country races to finalise austerity steps needed for a new bailout.
A look at the measures proposed by Angela Merkel and Nicolas Sarkozy to save the single currency under a new treaty.
Papademos faces a race against time to save debt-stricken nation from bankruptcy after a landmark power-sharing deal.
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Featured on Al Jazeera
Italy struggles to deal with growing flood of migrants willing to risk their lives to reach the nearest European shores.
Israel's Operation Protective Edge is the third major offensive on the Gaza Strip in six years.
Muslims and Arabs in the US say they face discrimination in many areas of life, 13 years after the 9/11 attacks.
At one UN site alone, approximately four children below the age of five are dying each day.
 
 
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