Athens , Greece ( CNN ) -- Greece will hold new elections in response to a political stalemate that left the debt-racked country unable to form a government , the office of President Karolos Papoulias said Tuesday . The announcement comes as the Greek debt crisis threatens the stability of the European Union 's single currency . Papoulias has called for all parties to meet with him Wednesday to set up a caretaker government that will conduct the new vote , his office said . Greece has been in a political deadlock since elections nine days ago left no party with a majority . The leaders of three different parties have tried to cobble together a workable coalition , but all have failed . That leaves Greece facing another vote , probably in mid-June . Meanwhile , the rest of Europe has watched with a nervous eye , fearing Greece could fail to make debt payments as early as next month . And that could force the country out of the euro , the currency used by 17 European Union countries . Markets across Europe fell slightly on the news of political talks breaking up Tuesday . The Dow was flat in New York in morning trading . The collapse of Greek talks came as France 's new president , Francois Hollande , met with German Chancellor Angela Merkel hours after his inauguration , and as European finance ministers met in Brussels , Belgium . What if Greece exits the eurozone ? The European Central Bank and International Monetary Fund have been pumping money into Greece to keep the country in the euro , but they have demanded that the Greek government slash spending to get the funds . When angry voters went to the polls on May 6 , they punished politicians who imposed the austerity measures , greatly reducing the number of seats held by the center-right New Democracy party and the Socialist PASOK party . Radical leftist leader Alexis Tsipras , whose Syriza party reaped the benefits of voter frustration with austerity , urged Greeks on Tuesday to continue resisting `` the parties of the bailout . '' `` They asked us to leave the country without any hope , '' he said , arguing that the May 6 election had left the terms of the bailout `` null and void . '' New Democracy leader Antonis Samaras , meanwhile , said his party would `` keep fighting for a developing Greece within Europe '' and `` against those who say they want to get Greece out of Europe . '' His party narrowly came in first in the May 6 elections , but opinion polls since then have suggested that Syriza would finish in first place in a new election . Analysts have warned that Greece must not remain without a government for long . `` If no government is in place before June when the next installment ( of loan money ) from the European Union and International Monetary Fund is due , we estimate that Greece will run out of money sometime between the end of June and beginning of July , at which point a return to the drachma would seem inevitable , '' Bank of America/Merrill Lynch wrote in a report released Friday . CNN 's Antonia Mortensen and journalist Elinda Labropoulou contributed to this report .
Radical left leader Alexis Tsipras says bailout deals are ` ` null and void '' Politicians refuse to make a deal after nine days of talks . Greek debt threatens the stability of Greece 's single currency . Markets in Europe fall on the news that no deal has been reached .