Greeks are voting in an early general election that could alter the course of the country’s struggle with crippling debts, with a radical left party poised to win by promising to rewrite the terms of its international bailout.

The German government believes that the eurozone would now be able to cope with a Greek exit if that proved necessary, the Der Spiegel news magazine reported.

Greece’s splintered political landscape means small, often relatively new parties may determine whether the winner of elections next month can cobble together a lasting government and avoid a new financial crisis.

Greek prime minister Antonis Samaras has announced plans for an early general election next month after parliament rejected his candidate for president, throwing the country’s international bailout into doubt.

A FALLING oil price is good for Western economies, at least in the short to medium-term, but it is not necessarily good for stock markets.

Police in Greece say they have foiled a bomb attack by a far-left militant group planned for the weekend.

Greek MPs approved the country’s 2013 austerity budget in a vital step to persuade international creditors to unblock a vital rescue loan instalment without which the country will go bankrupt.

Greek Prime Minister Antonis Samaras today talked the junior partners in his fragile coalition government into dropping objections to new spending cuts demanded by the debt-crippled country’s bailout creditors, averting a crisis that could have eventually forced the country to abandon the euro.

Greece’s new coalition government has vowed to repeal some of the country’s taxes, stop job lay-offs and extend by two years the deadlines for the austerity measures imposed by its international bailout.

Greece’s new conservative-led coalition government named its Cabinet today, appointing a prominent banker to take over the key position of finance minister.

Greece moved to end its protracted political impasse yesterday, swearing in a new prime minister to lead a largely pro-bailout coalition tasked with saving the country's place in the eurozone and easing a European financial crisis with global repercussions.

The three parties backing Greece's bailout deal have agreed to form a coalition government and are negotiating final details.

A coalition government could be formed by later today in Greece, the head of the country’s socialist party has said.

Greece's conservative leader is to hold a second day of talks with rival party leaders in an attempt to form a coalition government, after the debt-crippled country's second inconclusive election in six weeks.

Greek conservative leader Antonis Samaras is starting coalition talks after winning elections that follow weeks of uncertainty over the debt-crippled country’s future in the eurozone.

Fears of an imminent Greek exit from Europe’s joint currency receded after the conservative New Democracy party came first in a critical election and pro-bailout parties won enough seats to form a joint government.

The New Democracy party came in first in Greece’s election today and immediately proposed forming a pro-euro coalition government – a development that eased, at least briefly, deep fears that the vote would unleash an economic tsunami.

Greece’s conservative New Democracy party is set to come first in an election that is crucial for Europe and the world, exit polls showed tonight.

Former Greek Prime Minister George Papandreou has said it would catastrophic if Greece were to exit the euro currency.

Greeks have begun voting in their second election in six weeks, and arguably their country’s most critical vote in 40 years, with its treasured place within the European Union’s joint currency in the balance.

Angela Merkel has warned Greece it cannot renegotiate its bailout as the nation prepares to vote in tomorrow’s crunch elections that threaten the future of the eurozone.

Conservative leader Antonis Samaras told Greeks they faced a stark choice between sticking with the euro or a “nightmare” return to the drachma in an election that threatens to send shockwaves through the single currency.

Spain and Italy promised new measures to repair their public finances as their borrowing costs raised new alarm ahead of a cliffhanger Greek election.

The leader of a left-wing party in Greece has renewed a pledge to scrap the country’s bailout commitments after retaking a lead in opinion polls ahead of crucial national elections on June 17.

Opinion polls have indicated that Greece's second election in just over a month will result in no single party gaining a majority in parliament, but two pro-austerity mainstream parties could form a coalition government.

Greece’s newly installed caretaker prime minister began talks with party leaders ahead of this week’s EU summit that’s expected to focus on ways of kick-starting economic growth across the continent.

Greece is headed for another month of political paralysis ahead of new elections in mid-June after party leaders failed to agree a coalition government.

Fierce political rivalries have kept Greece from resolving its leadership crisis, with an anti-bailout party refusing to return to power-sharing talks.

Efforts to form a new Government in Greece have received a fresh blow after the leader of the moderate Democratic Left party said he would not take part in a coalition without the more radical leftist Syriza party.

Germany's finance minister Wolfgang Schäuble has warned Greece there will be no more money without reforms.

The main parties in Greece must either form a coalition by today, or face a second General Election.

Hopes have risen slightly that Greece can end its post-electoral deadlock without having to hold new elections, as international partners warned that Athens must stick to its austerity programme or abandon the euro.

Greece sank deeper into crisis yesterday when the leftist candidate for prime minister set conditions for a coalition which the biggest party said would destroy the country.

A first attempt to form a new Greek government collapsed in less than a day yesterday after an election which left gaping questions over the country’s ability to avert bankruptcy and stay in the euro.

The heads of the two parties projected to earn the most votes in Greece’s election have called for changes in the country’s international bailout terms, with one seeking to re-negotiate the deal and the other to overturn it.

Greeks angered by a vicious and protracted financial crisis punished their two main parties in national elections Sunday, with exit polls projecting them both haemorrhaging support and no party gaining enough votes to form a government.

An exit poll commissioned by Greek media shows three parties are vying for the top spot in the country’s critical parliamentary elections, with no definitive front-runner and none gaining enough votes to form a government.

Greece is to hold an early general election on May 6.

A cash-strapped Greek pensioner shot and killed himself outside parliament in Athens, saying he refused to scrounge for food in the rubbish.

The news their country is likely to avoid defaulting on its debts next month and the euro should remain their currency has been greeted uneasily by Greeks.

Hopes of a quick fix for Greece were dashed last night as a eurogroup finance ministers’ meeting due to be held today was cancelled.

With the eyes of an impatient Europe on them, Greece’s feuding leaders are united by a desire to avoid blame for the harsh austerity required to save their country from a catastrophic default.

Pressure mounted on Greece’s two main political parties today to wrap up three days of power-sharing talks and name a new prime minister.

A FORMER deputy head of the European Central Bank emerged yesterday as frontrunner to become Greek prime minister, as party leaders bargained over who will lead a “100-day coalition” to push through a bailout before the nation runs out of money.