Panagiotis Pikramenos, a senior judge, will lead an interim government of 16 until elections are held.
French President François Hollande and German Chancellor Angela Merkel held the first of many meetings yesterday, discussing proposals for augmenting austerity with stimulus measures.
The parties who won seats in the May 6 election could not form a coalition government, triggering new elections.
Socialist party leader Evangelos Venizelos today became the third politician this week to fail at forming a coalition government. If the president does too, Greece will head back to the polls.
Fed up with austerity, Greeks overwhelmingly voted against the mainstream parties that approved the bailout. They say they will do it again if another election has to be held.
Three days after Sunday's election, parties failed again to form a coalition government. A new election may be on the horizon if no majority can come together.
Stocks pitched down Wednesday in the US as borrowing rates climbed for Spain and Italy, a sign that investors are losing confidence in those countries' finances. The Dow lost 97 points to close at 12835 – its sixth consecutive day of losses.
Austerity politicians may have been given the boot in Europe, but austerity measures will remain.
Voters sent a strong message of anger over austerity measures imposed by Greece's foreign lenders, but with no party in the majority a government has yet to be formed.
In Germany, the results of yesterday's elections are seen as a refusal to follow the austerity plan hammered out by European leaders in long, painful negotiations.