BULGARIA'S ruling Socialists showed little sign of giving in yesterday to demands for early elections fuelled by a deep economic crisis, despite fresh street protests and threats of nationwide strikes.
Pressure mounted on the government from its own people and international lenders. The outgoing president, an opposition supporter, warned Bulgaria risked becoming a dismal example of how to bungle the transition from communism.
"Bulgaria is the first post-communist state that has failed in the transition to a market economy and is about to fail in the transition to democracy," President Zhelyu Zhelev told the Continent newspaper.
After hinting at compromise on Monday, the embattled Socialists announced yesterday they were willing to hold talks with the opposition on elections but would propose forming a new government with a policy programme for 500 days.
The opposition said it still wanted parliament to pass its "salvation declaration", the issue which sparked a violent siege of the legislature on Friday, and insisted a general election must be held soon.
Mr Zhelev has declined to invite the Socialists' Prime Minister-designate, Mr Nikolai Dobrev, to form a new cabinet to replace the Socialist government of Mr Zhan Videnov, who resigned as prime minister on December 21st.
Asked how long the new government should remain in office, Ms Mariela Miteva, a member of the Socialist leadership, said:
"The question is not the term, but the situation." Emergency laws for economic stabilisation had to be approved before elections, and polls could only be held in conditions of civil peace", she said. The opposition walked out of parliament on Friday after the ex-communist Socialists refused to vote on their "salvation declaration", which calls for early elections and negotiations with the International Monetary Fund (IMF) and World Bank on an economic programme to be conducted by an all-party team.
At least 196 people were hurt in clashes soon after between protesters and police.
Ms Miteva said the Socialists would attend Sunday's parliamentary session at which the opposition President-elect, Mr Petar Stoyanov will be sworn in. Mr Stoyanov said he had agreed to meet Socialist leaders, probably today.
Leaders of the opposition Union of Democratic Forces (UDF) met yesterday and said later they opposed the formation of a new long-term cabinet from the present parliamentary majority.
The quick formation of a new cabinet is seen as vital to secure a new funding agreement with the IMF and avert default on Bulgaria's $10 billion (£6.1 billion) foreign debt.
The World Bank said yesterday it was extremely worried about Bulgaria's economy and urged the implementation of a stalled programme of privatisation and other reforms.
Annual inflation for 1996 was 310.8 per cent.
Some 20,000 people marched in Sofia yesterday in what has become a daily ritual similar to the long-running anti-government rallies in neighbouring Serbia.