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Samaras to launch coalition talks

Greek conservative leader Antonis Samaras will launch coalition talks on Monday after coming first in national elections that follow weeks of uncertainty over the debt-crippled country's future in Europe's joint currency.

The campaign was closely watched by global leaders and markets, while central banks stood ready to intervene in case of financial turmoil as on Sunday's election was seen as a vote on whether Greece should stay among the 17 nations that use the euro.

A Greek exit would have potentially catastrophic consequences for other ailing European nations, while the fallout would hit the United States and the entire global economy.

Leaders of the European Union appeared relieved that a pro-austerity government could now be formed. The EU 'is convinced that continued fiscal and structural reforms are Greece's best guarantee to overcome the current economic and social challenges,' it said in a statement.

Asian stock markets climbed early on Monday on the news, as did those in Greece with Athens stocks gaining 5.1 per cent in early trading.

On Sunday's vote 'will probably ease fears of an imminent Greek euro exit,' said Martin Koehring of the Economist Intelligence Unit. 'But the key question is how quickly can a government be formed?'

With 129 of Parliament's 300 seats, Samaras' New Democracy party lacks enough legislators to govern alone, and must seek allies among the pro-bailout Socialists, who came third.

But the deal that evaded Samaras after first elections on 6 May looks more attainable this time.

With the Socialists' backing he would control 162 seats, and could seek a further boost from the small Democratic Left party, which, while opposing the country's harsh austerity program, has said it will do what is needed to help form a strong government.
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