Two lawmakers broke with Bulgaria's ruling Socialist party on Friday, threatening the parliamentary majority that keeps it in power despite massive street protests for new elections.

The defections came as talks collapsed between the Socialists and the opposition in their first face-to-face meeting since the opposition began boycotting parliament two weeks ago.Despite talking for two hours, the Socialists and the opposition failed to reach a compromise on a new government and elec-tions.

They have been deadlocked for weeks over how to rescue the economy, which is suffering from more than 300 percent inflation and a $10 billion foreign debt.

Tens of thousands of people demonstrating against the government for an 18th straight day cheered opposition leaders.

Socialist Premier Zhan Videnov resigned in December because of discontent over the lack of economic reform. Videnov remains in power until a new premier and a new Cabinet are named.

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Government foes are demanding early elections. The Socialists - former members of the communist forces that ruled Bulgaria until its 1989 revolution - want to form a new government themselves and postpone elections until later this year.

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