Greece's Syriza Forms Anti-Bailout Coalition

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Greece's left-wing Syriza party has formed an anti-austerity coalition government, just hours after sweeping to victory in Sunday's national election.

Party leader Alexis Tsipras struck a coalition deal with the right-wing Nationalist Independent Greeks party which, like Syriza, opposes Greece's tough international bailout deal.

"From this moment there is a government in the country," Nationalist Independent Greeks leader Panos Kammenos said after talks with Mr Tsipras at Syriza's headquarters in Athens.

"The Independent Greeks give a vote of confidence in Prime Minister Alexis Tsipras. There is an agreement in principle."

Syriza won 149 seats in the 300-seat parliament, just two seats short of an overall majority.

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Gallery: Alexis Tsipras Celebrates Victory For His Anti-Austerity Party

A young child supporting anti-austerity party Syriza takes part in celebrations after the first exit polls in Athens

Syriza supporters await the final result of the Greek election at the party tent

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Members of the conservative New Democracy party watch as exit polls shows a significant victory for Syriza

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Outgoing Greek Prime Minister Antonis Samaras is seen after a news conference following an updated exit poll in Athens

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Celebrations continue for supporters of Syriza leader Alexis Tsipras in Athens

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It had a 8.5-point lead over the ruling conservative New Democracy party of outgoing Prime Minister Antonis Samaras.

Mr Tsipras will be sworn in later this afternoon.

The unusual pairing of parties from opposite ends of the political spectrum, but with a shared drive to reverse painful austerity measures, raises the prospect of a stand-off with European creditors and economic powerhouse, Germany.

In his victory speech Mr Tsipras vowed Greece would abandon the "catastrophic austerity" measures imposed under the EU-IMF deal.

He has also promised to renegotiate the repayment terms of Greece's €240bn (£176bn) international bailout.

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Gallery: Tsipras' Surprising First Post-Election Tweet

Syriza party leader Alexis Tsipras' first tweet after sweeping to victory in Greece's general election was somewhat unexpected

His first victory tweet was to British actor and comedian Hugh Laurie for this message of congratulations

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"Greece leaves behinds catastrophic austerity, it leaves behind fear and authoritarianism, it leaves behind five years of humiliation and anguish," Mr Tsipras told thousands of supporters in Athens.

But a spokesman for the German Chancellor said Angela Merkel still expects Greece to stand by its commitments to international creditors, while Chancellor George Osborne said Syriza's promises were going to "be very difficult to deliver".

The head of the Eurogroup, made up of eurozone's 19 finance ministers, Jereon Dijsselbloem, also fired a warning shot at the new government, saying Greece's eurozone membership depended on it complying with its agreements.

Greece was forced to undertake deep budget cuts and fiscal reforms as a condition for the 2010 bailout from the so-called "Troika" - the group of creditors made up of the European Union, the International Monetary Fund and European Central Bank.

Many in Greece feel slashed public spending has hit the most vulnerable hardest, while leaving the tax evasion and corruption of the apparent elites untouched.

Financial markets have reacted nervously to the result, fearing fresh trouble in Greece and a contagion of anti-austerity sentiment in other struggling eurozone countries that could put strain the currency bloc.

The euro fell to a fresh 11-year low against the dollar shortly after the result became clear but later strengthened against the dollar and while stocks initially fell across Europe, the major markets later recovered.

The AthEx market - which tracks the prices of the top 25 firms in the Athens Stock Exchange - opened 0.6% lower before losing more than 5% of its value in a volatile first hour.

Mr Tsipras said he would cooperate with fellow eurozone leaders for "a fair and mutually beneficial solution", but said the Greek people come first.

"Our priority from the very first day will be to deal with the big wounds left by the crisis," he said.

"Our foremost priority is that our country and our people regain their lost dignity."

He added: "The verdict of our people means the Troika is finished.

"The new Greek government will be ready to cooperate and negotiate for the first time with our peers a just, mutually beneficial and viable solution."

Mr Samaras had insisted voters would be making a huge mistake to elect Syriza at a time when painful fiscal reforms may be about to pay off.

After conceding defeat, he told supporters: "My conscience is clear because I told the truth to the Greek people until the very end.

"I received a country that was almost destroyed and I was asked to hold a hot potato and I did that."

Mr Tsipras, meanwhile, used his first post-election tweet to respond to a message of congratulations from British actor and comedian Hugh Laurie.

"Thank you Dr", he wrote, in apparent reference to Laurie's role in the US television series House.

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