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Greece election: Coalition talks set to resume Greece coalition deal 'expected soon'
(about 1 hour later)
Talks between three parties on forming a new coalition government in Greece are set to resume on Wednesday, amid intense international pressure. The head of the small Greek Democratic Left party says he expects a deal later on Wednesday on a new coalition government, which he will support.
New Democracy, the conservative winner of Sunday's election, is expected to lead the new government. "We decided to give a vote of confidence to the government that will be formed," Fotis Kouvelis said.
Pasok leader Evangelos Venizelos said a government could be formed by midday (09:00 GMT) on Wednesday. He was speaking after talks with the conservative election winner Antonis Samaras, Reuters news agency reports.
New Democracy leader Antonis Samaras's three-day mandate to form a government expires on Wednesday. New Democracy, led by Mr Samaras, is expected to lead the coalition, which may also include the centre-left Pasok.
Mr Samaras's three-day mandate to form a government expires on Wednesday.
It is unclear whether Pasok, which came third in the vote, will join the government, or merely support it.It is unclear whether Pasok, which came third in the vote, will join the government, or merely support it.
The third party is Democratic Left. Between them, the three parties would have a majority of 29 seats in parliament. "We will have a government today," said a Pasok spokesman, quoted by the Associated Press.
They all favour keeping Greece in the euro while wanting to renegotiate terms of its EU-IMF bailouts, although they differ on the extent. Between them, the three parties would have a majority of 29 seats in parliament.
They all favour keeping Greece in the euro while wanting to renegotiate the terms of its EU-IMF bailouts, although they differ on the extent.
However, European leaders have indicated that there is limited room for manoeuvre and are expecting details on how the new government intends to make another 11.7bn euros (£9.4bn; $14.8bn) of cuts by 2014.However, European leaders have indicated that there is limited room for manoeuvre and are expecting details on how the new government intends to make another 11.7bn euros (£9.4bn; $14.8bn) of cuts by 2014.
New Democracy won 129 seats in Greece's 300-seat parliament on Sunday, followed by the radical anti-bailout party, Syriza, with 71, Pasok with 33 and the Democratic Left with 17.New Democracy won 129 seats in Greece's 300-seat parliament on Sunday, followed by the radical anti-bailout party, Syriza, with 71, Pasok with 33 and the Democratic Left with 17.
Pressure
World powers have urged Greece to move swiftly to form a government.
Speaking after talks between the three parties in parliament on Tuesday, Mr Venizelos said a government "must be formed as soon as possible".
He said his party would support the government "wholeheartedly", but had not yet decided what form its participation would take.
If Mr Samaras fails to form a government by the deadline on Wednesday, Syriza would be given a chance, followed by Pasok.
But Syriza leader Alexis Tsipras has said he will not even attempt to do so. He has also refused to join a government led by New Democracy.
Two international bailouts have been awarded to Greece, an initial package worth 110bn euros (£89bn; $138bn) in 2010, then a follow-up this year worth 130bn euros, but they come with tough austerity conditions attached.
Greece has also had 107bn euros (£86bn; $135bn) of debt, held by private investors, written off.