Greek officials say conservative New Democracy leader Antonis Samaras will be sworn in as prime minister shortly.
The three political parties – New Democracy, Democratic Left, and PASOK – said Wednesday they have agreed on the formation of a coalition government, after two-and-a-half days of talks.
Socialist party leader Evangelos Venizelos told reporters more details about the new government will be released later in the day.
Samaras's conservative New Democracy party won 129 of 300 seats in Sunday's parliamentary elections, but having fallen short of an absolute majority, the party was forced to negotiate a coalition government with PASOK and New Democracy. The three parties support international bailouts for Greece's troubled economy, but seek to renegotiate the terms of a bailout deal offered by the European Union and International Monetary Fund.
The Syriza party, which took second place in the elections, opposes bailouts and has refused to join a coalition. Its leader says Greece needs to have a strong opposition and that history will prove that the bailouts and accompanying sharp spending cuts were wrong for Greece.
The monetary crisis in Greece exploded in 2009 and set off a chain reaction across Europe. Greece is now in its fifth year of recession, with unemployment more than 22 percent. Greeks have filled the streets in often violent protests against the austerity drive, which includes spending cuts, tax hikes, and firing thousands of civil servants.