20 Jun 2012

Coalition talks in Greece 'make progress'

9:20 am on 20 June 2012

Greek parties are making progress towards forming a government following Sunday's election, officials say.

The conservative New Democracy party, which won the weekend vote, is expected to lead the coalition supported by socialist Pasok party, which came second, and the smaller Democratic Left party.

The parties support keeping Greece in the euro though plan to negotiate easier terms for Greece in its EU/IMF bailouts.

Pasok leader Evangelos Venizelos said his party would support the government "whole-heartedly" but had not yet decided what form its participation would take.

Two party officials indicated to Reuters that the New Democracy, Pasok and Democratic Left parties were making progress towards forming a government.

In Sunday's election New Democracy won 29.7%, anti-bailout grouping Syriza 27% and the Pasok party 12.3%.

Negotiators ended talks for the day late on Tuesday and were to resume discussions at 10am GMT on Wednesday.