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.

Greeks will be spared more austerity measures this year, parties backing the coalition government promised today, although they refused to rule out more painful cuts starting next year.

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.

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

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.

Greece will hold a new general election in June after days of talks failed to resolve the country’s political deadlock.

Greece will face another general election, socialist leader Evangelos Venizelos said after talks to agree a new government produced no deal.

Greek leftists rejected a last-ditch proposal by the head of state yesterday to put technocrats in charge of the country, as financial markets slid on speculation that political turmoil would force Athens out of the eurozone.

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.

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.

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.

Efforts to form a coalition have failed, Greece’s socialist leader and former finance minister said last night.

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

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.

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.