Political leaders in Greece reached an agreement Sunday night to form a new unity government, a move that will allow the debt-ridden country to secure a European Union bailout.

In an effort to break the political deadlock, Greek President Karolos Papoulias hosted late, closed-door talks between Prime Minister George Papandreou and opposition leader Antonis Samaras.

Throngs of reporters outside the gates of the presidential palace in Athens were on hand when word came a few hours later.

Reporters from Greek national media read the statement from the president's office.

The statement said Mr. Papandreou and New Democracy party leader Antonis Samaras had reached a preliminary agreement to form an interim government, and that Mr. Papandreou will not lead the new government.

The statement added that the two men are expected to meet again on Monday to discuss details of the plan, including who will lead the government to early elections.

Earlier Sunday, Samaras said the prime minister had to step aside. "He [i.e., Mr. Papandreou] is obstructing any solution.  And if he does not resign, he does not allow the constitution to operate properly.  So if he does resign, then things will go as they have to," he said.
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