Greek Parties Approve on Coalition Govt

A deal has been struck to form a New Greek coalition government, say the parties involved.

Antonis Samaras of New Democracy, the party which narrowly won Sunday’s elections, is meeting President Karolos Papoulias to confirm the deal.

Samaras is expected to be sworn in as prime minister later on Wednesday, with the cabinet to follow tomorrow.

The coalition will also include the Socialists (Pasok) and the smaller Democratic Left.

But second-place Syriza will be a defiant voice of opposition, correspondents say.

The latest developments come after Greeks were forced to return to the polls on Sunday, after parties failed to agree a government on the results of the first election on 6 May.

Greece has endured nearly seven weeks of political uncertainty which threatened to spark turmoil throughout the euro zone and beyond.

The country is in its fifth year of recession. The coalition is expected to seek some easing of the tough terms of Greece’s huge bailout from the EU and the International Monetary Fund (IMF).

Pasok leader Evangelos Venizelos said Greece would be represented by outgoing Finance Minister Giorgos Zanias at a meeting of euro zone finance ministers in Luxembourg on Thursday.

The opposition leftist bloc Syriza came second in the election and strongly opposes the tough austerity measures required under the bailout.

There have been many street demonstrations – sometimes violent – by Greeks angered by the job losses, pay cuts and reduced welfare resulting from the bailout deal.

Greece got an initial EU-IMF package worth 110bn Euros (£89bn; $138bn) in 2010, then a follow-up this year worth 130bn Euros.

Greece has also had 107bn Euros (£86bn; $135bn) of debt, held by private investors, written off.

New Democracy won 129 seats in Greece’s 300-seat parliament on Sunday, followed by Syriza with 71, Pasok with 33 and the Democratic Left with 17.

Between them, New Democracy, Pasok and Democratic Left would have a majority of 29.

They all favour keeping Greece in the euro while wanting to renegotiate the bailout terms, although they differ on the extent.

However, European leaders have indicated that there is limited room for maneuver.

The BBC’s Chris Morris in Athens says the new coalition will press its EU partners for some breathing space over the bailout conditions, but a frosty reaction can be expected from some countries.

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