Greece coalition government likely on Wednesday

As talks for formation of new ‘coalition’ government in Greece enter into second day, leaders are hopeful for formation of a new government.

Last Updated: Jun 20, 2012, 00:02 AM IST

Zeenews Bureau

Athens: As talks for formation of a new ‘coalition’ government in Greece entered into second day on Tuesday, leaders expressed hope for the formation of a new government on Wednesday.

“We are hoping that a new government will be formed by afternoon tomorrow,” Pasok leader Evangelos Venizelos said. He further said that his party would support the government "whole heartedly", but had not yet decided what form its participation would take.
Venizoles said this after rival Greek party leaders continued with talks with two potential minority partners voicing hope that a pro-bailout coalition government can be quickly formed after the debt-crippled country`s second inconclusive election in six weeks.

At the core of any administration will be Antonis Samaras` New Democracy party, which came first in Sunday`s vote and won 129 of Parliament`s 300 seats, but not enough to govern alone.

Samaras is seeking an alliance with the third-placed Socialist PASOK and the smaller Democratic Left party, which would broadly fulfill Greece`s pledges to its bailout creditors for further cutbacks and reforms, keeping the country within Europe`s joint currency.

Otherwise, Greece would run out of cash and the continent could plunge deeper into a financial nightmare with global repercussions.

The main sticking point promises to be how much Greece is willing to tempt fate by seeking a more lenient deal from creditors fed up with missed targets and broken reform pledges.