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Greece 'has a coalition government' - Pasok party leader Greece has coalition government, says Pasok party chief
(31 minutes later)
A deal has been struck to form a new Greek coalition government, the leader of the Greek Socialists (Pasok) says.A deal has been struck to form a new Greek coalition government, the leader of the Greek Socialists (Pasok) says.
"Greece has a government," Evangelos Venizelos said, following talks with the conservative election winner Antonis Samaras. "Greece has a government," Evangelos Venizelos said, following talks with the conservative election winner, Antonis Samaras.
Details are expected to be finalised later on Wednesday, the BBC's Mark Lowen reports from Athens. Details are expected to be finalised later on Wednesday.
The small Democratic Left party is also expected to be in a ruling coalition with Pasok and New Democracy. Greece is in its fifth year of recession. The coalition is expected to seek some easing of the tough terms of Greece's huge EU-IMF bailout.
Democratic Left leader Fotis Kouvelis said "we decided to give a vote of confidence to the government that will be formed". Mr Venizelos said Greece would be represented by outgoing Finance Minister Giorgos Zanias at a meeting of eurozone finance ministers in Luxembourg on Thursday.
New Democracy, led by Mr Samaras, has until Thursday to form a government, otherwise the opposition leftist bloc Syriza gets a chance. The small Democratic Left party is also expected to be in a ruling coalition with Pasok and Mr Samaras's New Democracy, which narrowly won Sunday's election.
Democratic Left leader Fotis Kouvelis said: "We decided to give a vote of confidence to the government that will be formed."
A New Democracy official quoted by Reuters news agency said Mr Samaras would meet President Karolos Papoulias later on Wednesday to announce the coalition deal.
Shortly after that Mr Samaras is expected to be sworn in as prime minister.
The opposition leftist bloc Syriza came second in the election and strongly opposes the bailout.