Mugabe, opposition under growing pressure for deal

By Nelson Banya

HARARE (Reuters) - Zimbabwe's ruling party warned power-sharing talks resuming on Tuesday risked collapse as it haggled with the opposition over roles in a new government.

Marathon talks have so far failed to secure a breakthrough.

After a second day of discussions, President Robert Mugabe told reporters on Monday there was no progress but a deal was still possible.

The negotiations are seen as the best chance to end a post-election crisis and raise hopes of economic recovery.

A source in the opposition MDC said Mugabe was refusing to give up executive powers, while an official from the ruling ZANU-PF said MDC boss Morgan Tsvangirai's demands could scupper chances for a breakthrough.

Talks began in July after Mugabe's unopposed re-election in June in a poll condemned throughout the world as unfair and boycotted by Tsvangirai because of attacks on his supporters.

The rival leaders ended a 14-hour meeting early on Monday.

Mugabe told supporters at a rally in Harare that there was progress in talks with Tsvangirai and breakaway MDC faction leader Arthur Mutambara. South African President Thabo Mbeki is mediating.