by Calculated Risk on 11/06/2011 03:29:00 PM

From Athens News: Coalition government deal reached

According to sources, Greek prime minister George Papandreou and opposition leader Antonis Samaras agreed on the form of a coalition governments at talks hosted by the president Karolos Papoulias on Sunday.

According to an announcement [from] the Presidency George Papandreou will not lead the new government. The new government will ratify the EU deal of Oct. 26th and afterwards will lead the country to elections.

UPDATE:

From the NY Times: Leaders in Greece Agree to Form a New Government

After crisis talks on Sunday night, Prime Minister George Papandreou and his main rival agreed to create a new unity government in Greece that will not be led by Mr. Papandreou, according to a statement released Sunday night by the Greek president, who mediated the talks.

Mr. Papandreou and the opposition leader Antonis Samaras agreed to meet again on Monday to hammer out the details. The name of the new prime minister is not expected until then.