Greek parties to form pro-bailout govt.

A senior official from conservative New Democracy said late on Monday that the agreement is expected soon on a new cabinet with the PASOK socialists and maybe another smaller center-left party, Reuters reported.

“We are going to clinch a deal tomorrow, we will form a government,” the official said, asking not to be named. “PASOK will participate more than symbolically … They will participate actively.”

On Sunday, New Democracy narrowly won the country’s parliamentary elections by securing 29.7 percent of the vote, the Greek Interior Ministry said.

The anti-bailout radical leftist SYRIZA party garnered 26.9 percent of the ballots to come in second in the Sunday elections.

The results showed that New Democracy secured 129 of the parliament seats while SYRIZA and PASOK won 71 and 33 seats respectively.

New Democracy leader, Antonis Samaras, described his party’s win as a ‘victory for all of Europe.’

New Democracy will now be able to form a majority coalition with its traditional partner, the socialist PASOK. Both parties want to keep Greece in the eurozone.

Greece has been in recession for five years, with the economy having shrunk by 15 percent over the past three years, the longest-running slump in modern times.

The country is seeing bank deposits dwindle, and tax collection remains a problem. It is also unable to devalue its currency and has no industries other than tourism and agriculture exports.

GJH/HJL

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