Shortly afterwards Karolos Papoulias, the plain-speaking Greek president, told Mrs Merkel the Greeks could not endure much more austerity.

ECONOMIST: Greece and Germany

If the three parties fail to form a coalition, President Papoulias may try to broker a government of national unity.

FORBES: Possible Political Fallout From European Elections - Analyst

Antonis Samaras of New Democracy, the party which narrowly won Sunday's elections, has met President Karolos Papoulias to confirm the deal.

BBC: Greece parties agree coalition government