Greek political leaders have announced the formation of a new government, due to pressure from the EU, which is delaying financial support for the state, RIA Novosti reports.
Prime Minister George Papandreou will not head the new government. A new Cabinet will be formed right after the realization of October's decisions.
Two leading political parties agreed to form a government. Greece will most likely hold off-year polls on February 19, 2012, the Greek finance minister said.
The first consultations of the parties show common grounds on realization of credit agreements with Europe. European leaders say Greece may leave the euro zone unless it disagrees to write off part of the debt in exchange for harsh reductions. This triggered a political crisis in the state, with the resignation of the PM. EU heads agreed to write off part of the debt on October 26 in exchange for a harsh budget program. The EU halted aid last week due to Greece's unclear policy.
Greece owes 360 billion euros in credits to the EU and IMF. They are currently frozen. Greek will suffer a market crash unless a tranche is unfrozen.
