Nepal’s parliament speaker said communists have agreed to stop blocking parliamentary proceedings so that politicians can choose a new government.

Troops were deployed to protect key areas of Nepal’s capital Katmandu today – a day after police clashed in the streets with protesting communists who are demanding that the president back the firing of the country’s army chief.

Nepal’s political parties were holding crisis talks on forming a new coalition government today after the prime minister resigned in a power struggle with the president over enlisting former Maoist rebels into the military.

NEPAL’S prime minister resigned yesterday amid a power struggle over his firing of the army chief, saying he was stepping down to “save the peace process” that brought the Himalayan nation out of a decade-long civil war.