Greece's centre-right New Democracy party has declared victory after Sunday's parliamentary elections, easing fears of a chaotic exit from the eurozone. Early results had New Democracy winning nearly 30 per cent of the vote, which would give it 128 seats in the 300-seat parliament because of a 50-seat boost given to the victor under the Greek electoral system.
Coalition talks are now expected to start later today, with the most likely ally being the socialist Pasok party, which seems to have won 33 seats.
The anti-austerity radical leftist Syriza party came second with about 26 per cent of the vote after galvanising widespread anger against the cuts imposed by an unpopular multi-billion bailout deal with the European Union and the International Monetary Fund.
"Today the Greek people expressed their will to stay anchored with the euro, remain an integral part of the eurozone, honour the country's commitments, and foster growth," New Democracy leader Antonis Samaras said this morning.
"This is a victory for all Europe.
"I am relieved. I am relieved for Greece and Europe. As soon as possible we will form a government."
Mr Samaras said the country would honour its commitments to its eurozone partners.
"The Greek people voted today to stay on the European course and remain in the eurozone... there will be no more adventures, Greece's place in Europe will not be put in doubt," he said.
Syriza's leader Alexis Tsipras, who had vowed that the bailout deal would be "history" on Monday if he won, conceded defeat.
A deadlock between New Democracy and Syriza could have left Greece in the political gridlock which followed elections last month and triggered this vote just six weeks later.
Greece has been forced to seek bailouts twice, first for 110 billion euros in 2010 and then for 130 billion euros this year plus a 107 billion euro private debt write-off - for a total of 347 billion euros ($436 billion).
Initial results showed the neo-Nazi party Golden Dawn has won enough votes to enter parliament on the back of growing anti-immigrant sentiment and concern about security which has accompanied the economic crisis.
Just as the first results filtered through, German foreign minister Guido Westerwelle said Berlin was ready to discuss giving Greece more time to meet its bailout obligations.
"There can't be substantial changes in the engagements" undertaken by Greece in the bailout deal, he said.
"But I can imagine we discuss again a delay" in achieving the targets, he added.
Mr Tsipras has accused Mr Samaras of misrepresenting the election as a choice between keeping the euro or returning to the drachma.
The 37-year-old has accused Mr Samaras of defending "Merkel's Europe" - a mocking reference to the German chancellor who is widely contested in Greece.
Greek newspapers said the vote was the most critical since the end of military rule in 1974.
Germany's Bild tabloid added to tensions ahead of the vote with an open letter telling Greeks their ATMs had euros only because "we put them there".
"If the parties who want to be through with austerity and reforms win the election and contravene every agreement, we will stop paying," it said.
ABC/AFP
