Greek PM agrees to coalition govt

Greek Prime Minister Georgios Papandreou has given his principle agreement to a coalition government, but he does not plan to resign, the Greek national television reported, citing government sources.

Earlier a group of more than 20 MPs from the governing party PASOK sent an open letter, insisting on the formation of a coalition government. The opposition in the parliament also called for an interim coalition cabinet until early elections take place in exchange for support for the new EU bailout.

If Papandreou does not manage to reach an agreement with the opposition to form a coalition government, his cabinet will have to struggle to survive a vote of confidence in the parliament on Friday.