Greek 'conservative-led government has been agreed'

A conservative-led Greek government has been agreed and will form a team to "renegotiate" the EU/IMF bailout saving the country from bankruptcy, Socialist PASOK leader Evangelos Venizelos has said.

Venizelos, whose PASOK party will enter an alliance with the larger conservative New Democracy, said cabinet posts would be decided by Wednesday evening. He said the key issue would be to form a team to renegotiate the 130 billion euro ($164.79 billion) bailout.

"Greece has a government and this is the message that the outgoing finance minister (George) Zanias will take to the Eurogroup," Venizelos told reporters.