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.

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.

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.

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

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.