Greece is at a "historically critical" moment, prime minister George Papandreou said on Wednesday, and reiterated his call for national understanding, as he was greeted at the Presidential Mansion by President of the Republic Karolos Papoulias for an extraordinary meeting asked by the premier.

Papandreou said that, even today, he was in contact with the leaders of the other political parties to seek understanding, adding: "Everyone undertakes his responsibilities. I am aware of my responsibilities and the responsibilities of my government towards the Greek people and the country."

"In every instance, we will move ahead, with this sense of responsibility, for the necessary decisions in order for the country to exit the crisis," Papandreou added.

Papoulias stressed the need for a nationwide effort.

Prime minister George Papandreou will continue his round of telephone contacts on Wednesday with the political party leaders after his extraordinary meeting with Karolos Papoulias, government sources said, adding that the premier had spoken only with Communist Party of Greece (KKE) leader Aleka Papariga and Democratic Left leader Fotis Kouvelis before the meeting with the President.

The Communist Party of Greece (KKE) on Wednesday said that the party's general secretary Aleka Papariga has asked for early elections, during a conversation with Prime Minister George Papandreou on the telephone. The call was made by Papandreou.

A KKE statement said the prime minister had once again raised the issue of consensus between the parties on the terms set by the European Union in order to give additional loans to Greece.

Papariga replied that KKE refused to discuss any kind of consensus with "terms of impoverishment for the people" and once again expressed her party's complete opposition to the strategies of ruling Pasok, main opposition New Democracy and the EU.

The sources said that the premier would call main opposition New Democracy (ND) leader Antonis Samaras, Popular Orthodox Rally (LAOS) leader George Karatzaferis, Coalition of the Radical Left (SYRIZA parliamentary alliance) parliamentary group leader Alexis Tsipras and Democratic Alliance leader Dora Bakoyannis after his meeting with the President.

Papandreou, the sources continued, would not make statements after his audience with Papoulias at the Presidential Mansion, but would make an address to the people later.

The government sources left open all prospects, but for the time being ruled out snap elections.

A statement by Papandreou as he entered into the meeting with Papoulias that even today he was in contact with the party leaders to seek consensus sparked denials of such telephone contacts by ND and SYRIZA.

Main opposition New Democracy categorically denied on Wednesday rumors appearing on several blogs and websites of a meeting on Tuesday between ND leader Antonis Samaras and a representative of prime minister George Papandreou.

In an announcement, ND press officer Yiannis Michelakis called the rumors "absurd" and unworthy of denial.ana-mpa

ND further denied any telephone contact whatsoever between Samaras and Papandreou.

PM and ND leader discuss all-party government, sources claim

Prime Minister George Papandreou held talks with main opposition New Democracy leader Antonis Samaras on the telephone on Wednesday, after a round of telephone calls with the leaders of the other political parties in Parliament. Their conversation lasted roughly 20 minutes.

While an earlier official announcement by ND had refused to disclose the content of their talks before Papandreou had expressed his position, unnamed sources within the party said that the prime minister had described the situation as extremely difficult and that he was prepared to consider either an all-party government or a broader alliance government.

The same sources said that Samaras did not reject the proposal but made it clear that this could not work with Papandreou as prime minister. To this, always according to ND sources, Papandreou apparently replied that he was not concerned about whether he was prime minister.

Other sources within the party announced that there would be a second telephone communication between the two men later on Wednesday afternoon.

Samaras has apparently made it a condition that there is a substantial renegotiation of the terms of the Memorandum for the loans to Greece, in order to agree to an all-party government.

The ND leader, who has been in continuous contact with his closest aides since the morning, is expected to head to his party's headquarters in a short while.