The Socialist Pasok party, the New Democracy party, and the Democratic Left reached agreement to form a coalition government in Greece. Although the Greece's problems are not even close to being resolved, this is a critical step as Greece prepares to meet with Eurozone leaders at the upcoming European Commission meeting on June 20 and 21 and the European Summit on June 28 and 29.
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The New Democracy party won Greece’s election over the past weekend but the victory was indecisive and failed to give the new leadership a majority in the parliament. Antonis Samaras got to work immediately to form a coalition and will become the country’s prime minister on Wednesday, June 20.
He will inform Greek president Carolos Papoulias that a coalition has now been formed and former Finance Minister George Zanias will represent Greece at the European Commission meeting that starts on Thursday June 21. Other specific posts within the new coalition are expected to be decided imminently.
New Democracy party leader Samaras and Socialist Pasok party leader Evangelos Venizelos led the previous coalition jointly. Together, they were able to extend the olive branch to the Democratic Left to gain the broad-based solidarity needed for the new coalition to enable Greece to regain the confidence of foreign creditors.
The European Commission meeting will serve as a test of the coalition’s solidarity
, an essential ingredient as the coalition works to get a two-year extension of the deadline to meet the latest bailout’s austerity mandate.