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Leftist Alliance, Labor Party Agree to Form New Government in Lithuania

Lithuania's ruling leftist alliance coalition and the country's new Labor Party have agreed to form a new government for the country.

The populist Labor Party emerged as the largest group in parliament in last month's elections, but failed to win enough seats to form a government.

Representatives of the Labor Party and the Social Democratic and Social Liberal parties signed an agreement on the principles of a coalition Wednesday.

Established parties across the political spectrum had explored the possibility of forming a coalition in order to exclude the newcomer Labor Party. They feared that its leader, Russian-born millionaire Viktor Uspaskich, would revive Moscow's influence in Lithuania. But the talks failed when leaders of the current coalition agreed to open simultaneous discussions with the Labor Party.

Some information for this report provided by Reuters.