(BBC News) Talks on the formation of a coalition government in Greece have gone into a second day, amid intense pressure from world powers and financial markets.

New Democracy, the centre-right party which won Sunday's election, is seeking an alliance with the socialist Pasok party and the smaller Democratic Left.

All three parties have said the new government should take office quickly.

They also favour keeping Greece in the euro, but want to renegotiate the terms of its bailouts by the EU and IMF.

However, European leaders have indicated that there is limited room for manoeuvre and are expecting details on how the new government intends to make another 11.7bn euros (£9.4bn; $14.7bn) of cuts by 2014.