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A new government will be set up because otherwise Bulgaria will not be able to update the budget, caretaker Prime Minister Georgi Bliznashki said.
In what was described as Bliznashki's last interview as PM, he voiced his hope that parties would overcome swiftly overcome their differences to take part in the future government.
He told private national channel NOVA TV two options still existed, the first being a coalition between conservative GERB, right-wing Reformist Bloc and nationalist Patriotic Front and the second, "if this options proves impossible, a grand coalition could be sought, the one on which Europe is insisting".
Bliznashki criticized the Reformists, who failed to reach an agreement with GERB in Wednesday's government consultations, for setting out "impossible" conditions to their potential partners.
The Prime Minister warned against holding new elections, arguing they could have "disastrous" consequences.
GERB leader Boyko Borisov earlier threatened that the snap elections were looming if talks with other parties reach deadlock.
Bliznashki also dismissed claims that an unprecedented political purge was under way in the administration, with the caretaker cabinet having "dismissed only up to 100-150" civil servants.
In his view, the next cabinet will have to face the difficult task of fighting "backdoor" games that have "dominated politics for years".
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