Greece’s rival parties have agreed to launch an interim coalition government and approve a second euro zone bailout.

The Greek president’s office said in a statement that the agreement was reached in a meeting between Prime Minister George Papandreou and Antonis Samaras, the head of the main opposition party “New Democracy." The meeting was organized by Greek President Karolos Papoulias

The presidential office said that Papandreou will not lead the new government, confirming the resignation of the prime minister.

The Socialist ruling party and the conservative opposition party also agreed to hold a general election on February 19th next year.