A fresh wave of anti-austerity strikes has hit Greece as its leaders struggled to agree further spending cuts for the coming two years – without which the country will lose its vital rescue loans.

Greece’s new three-party coalition government won a late-night vote of confidence in parliament, ending a period of uncertainty that led to two elections in less than two months.

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 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.

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.

The spokesman for Greece's extremist far-right Golden Dawn party caused an uproar today when he physically assaulted two left-wing deputies on live television during a morning political show.

Greek stock markets rebounded strongly today from a 22-year low on hopes a pro-bailout party will win crucial national elections next month, which would avoid a catastrophic rift with international creditors and keep the struggling country within the eurozone.

Senior judge Panagiotis Pikramenos was named Greece’s caretaker prime minister today, and new elections will be held on June 17, according to reports on state TV.

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.

Greek political leaders ignored a final plea from the president to form a coalition government to avert a repeat election, pushing the debt-stricken nation closer to bankruptcy and a possible exit from the eurozone.

A meeting convened by Greek President Karolos Papoulias with three main party leaders to try to break the deadlock and broker a coalition government deal has ended.

Greece’s president will meet political party leaders today in a last-chance effort to broker a deal for a coalition government and avoid another general election.

Greece’s wrangling politicians were locked in last-ditch efforts today to form a coalition government, with chances of a deal appearing slim.

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.

Greek power-sharing talks entered a third and final round today, as parties in the crisis-hit country struggled to hammer out a coalition deal after general elections produced no outright winner.

Leftist leader Alexis Tsipras gave up his attempt to form a government yesterday, pushing Greece closer to its second election in a few weeks, after voter rejection of an EU/IMF bailout plunged the country into crisis.

The leader of a radical left-wing party tasked with trying to form a coalition government in Greece is to meet mainstream party heads, a day after he demanded they withdraw their signatures from the international bailout deal.

Greece sank deeper into a political and financial morass as initial efforts to form a new coalition government failed, a day after angry voters punished parties backing the country’s international bailout.

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 leader of the runner-up party in Greece’s national election, the Radical Left Coalition’s Alexis Tsipras, has rejected a coalition with the winning conservative party.

Greece faces weeks of financial turmoil after voters angry at crippling income cuts punished mainstream politicians, let a far-right extremist group into Parliament and gave no party enough votes to govern alone.

Renewed uncertainty over Europe’s ability to deal with its spawning debt crisis following elections in Greece and France hammered stock markets today, with the main exchange in Athens down a massive 8%.

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.

Greeks began voting at precisely 7am local time in their most critical – and uncertain – election in decades, with voters set to punish the two main parties that are being held responsible for the country’s dire economic straits.

Greeks head to the polls on Sunday in their most critical – and uncertain - election in decades, with voters set to punish the two main parties that are being held responsible for the country’s dire economic straits.

A pensioner has been hailed as a “martyr for Greece” following his suicide outside parliament.

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.

THE Greek government faced possible collapse yesterday as ruling party lawmakers demanded Prime Minister George Papandreou resign for throwing the nation’s euro membership into jeopardy with a shock call for a referendum.

GREEK Prime Minister George Papandreou has offered to step down to make way for a national unity government, provided it supports European Union/International Monetary Fund bailout plans, Greek state sources said yesterday.

Greece’s prime minister has said he will consider holding a referendum on further cutbacks essential for the loan-dependent country to continue drawing on funds from an international bailout, amid persistent anti-austerity protests.

Greece’s Socialists have trounced the governing conservatives in a landslide election.

GREECE’S governing conservatives appeared headed for election victory last night, exit polls showed, despite widespread anger over devastating forest fires that killed more than 65 people last month.

Official results with just more than 40% of the total vote in the Greek election today counted showed Karamanlis' New Democracy party ahead with 43.7% and the opposition socialist PASOK party in second place with 38.5%.

EXIT POLLS last night indicated Greece's opposition conservatives had won yesterday's general elections, ending more than 10 years of rule by the socialist party.

Palestinian leader Yasser Arafat was today addressing a governing socialist party convention and meeting Greek political leaders.