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News Link • European Union

Greek Coalition Government Deal Agreed

, 20:57, Sunday 6 November 2011

A deal on a new coalition government in Greece has been reached - but current prime minister George Papandreou will not be at the helm.

The draft agreement between Mr Papandreou and the country's opposition leader, Antonis Samaras, came after a day of speculation that the PM would resign.

The two sides said they would take the country to an election after the implementation of the bailout deal and would meet on Monday to work out the details of the new caretaker government.

Mr Samaras had earlier insisted the PM must go to save the economy and said he was willing to help in the formation of a coalition government - but not until Mr Papandreou had stepped down.

Despite winning a confidence vote in parliament, Mr Papandreou has struggled to form a temporary coalition government to back the controversial EU bailout package.


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