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.

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

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

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.

Greece faces days, possibly weeks, of political instability after voters angry at crippling income cuts punished mainstream politicians.

Polls indicate that Greece’s majority Socialists are trailing their main conservative rivals by up to seven percentage points nearly two weeks before crucial national elections.