Greece's New Democracy party starts talks to form government

Leaders of Greece's New Democracy party started talks to form a government today after an election victory that saddles it with the daunting task of imposing austerity measures that would prove to be extremely unpopular in a near-bankrupt economy, apart from containing rising social tensions.

Party leader Antonis Samaras was due to meet the head of the Socialist Pasok party, Evangelos Venizelos,in the afternoon after receiving the mandate to form a government from Greek president Karolos Papoulias.

The once-mighty Pasok, which has now fallen to the third place thanks to the dramatic rise of the leftist anti-bailout party Syriza, said it would support Samaras but was undecided on joining the government.

Samaras said Greece would fully meet its commitments but added that some necessary amendments to the bailout agreement would have to be made in order to relieve the people of crippling unemployment and huge hardships.

Greece is struggling to restore its near-bankrupt economy amid deep recession, and a massive public debt burden that has required it to slash public spending and hike taxes repeatedly. Analysts say the new government could be faced with protests after taking office.

According to Theodore Couloumbis, political analyst and vice-president of Athens-based think-tank Eliamep, the crisis had been postponed, not necessarily averted.