Greece on 'Knife Edge' of Default Again; Premier Pleads for Euro Bailout

Papademos's first mission Sunday was to agree at least a preliminary deal with the "troika" of foreign lenders on reforms included in the bailout, after several days of talks failed to resolve the thorny issue of cutting wages and spending.

Greek officials have emerged increasingly despondent after each round of talks, complaining that the European Central Bank, European Union and International Monetary Fund troika were stubbornly refusing to yield on demands to cut the minimum wage level, axe holiday bonuses and fire public sector workers.

A meeting between the two sides ended Sunday afternoon without any immediate indication on whether they had been able to resolve outstanding issues.

Papademos now faces an even tougher task convincing party chiefs in his own national unity coalition to back the reforms demanded by the lenders at the risk of ruining their chances at national elections expected in April.

Talks with the socialist, conservative and far-right party leaders in his coalition were continuing Sunday.

The conservative New Democracy and the far-right LAOS party in particular have staunchly opposed further wage and spending cuts, arguing they risk pushing Greece into an even deeper recession and imposing more pain on struggling Greeks.

LAOS leader George Karatzaferis rejected what he called the "ultimatum" to strike a deal Sunday.

Papademos's government implored them to be more cooperative.

"We have carried out superhuman negotiations. And so political leaders must help us now," a senior government official said, adding that the party chiefs were free to join the Sunday talks with lenders if they wanted.