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    The protracted deadlock and the prospect of an anti-austerity party winning the new vote hammered Europe’s markets on fears that Greece might have to leave the euro.

    About US$898 million in deposits have flown out of Greek banks since the May 6 elections, President Karolos Papoulias told party leaders after being briefed by the central bank governor, George Provopoulos.

    “The situation in the banks is very difficult,” Papoulias said according to a transcript of the meeting’s minutes released by his office. “Mr. Provopoulos told me that of course there is no panic, but there is great fear, which could turn into panic.”

    Socialist party leader and former Finance Minister Evangelos Venizelos on Tuesday said the country was “unfortunately” headed for another round of elections, “because certain people coldly put their short-term party interests above the national interest.”

    Papoulias convened a new meeting of party leaders yesterday to appoint a caretaker government until the election.

    (SD-Agencies)