Panagiotis Pikrammenos, head of Greece's Council of State, has been sworn in as head of the country's caretaker government today.
Elections will be held on June 17th, acting parliament speaker Vyron Polydoras told lawmakers elected in the May 6th poll. The new parliament was sworn in today and will then be dissolved.
"The battle which is beginning, the elections, isn't about isn't about any party," Antonis Samaras, leader of the New Democracy party, said.
"It is about whether Greece will remain in Europe, a Europe that is changing, or whether Greece will be forced to leave Europe, losing much and risking much more."
The new vote follows inconclusive result in an election les than two weeks ago that pushed a political party opposed to Greece's international bailout into second place, raising the prospect of Greece leaving the euro.
Opinion polls say that the party, Syriza, may come in first next time, complicating Greece's efforts to avoid running out of cash by early July.
"I have read that due to my name I am the most appropriate prime minister," Mr Pikrammenos, whose name means "bitter" in Greek, said.
"It is a great joy and also a great burden."
Mr Samaras's New Democracy party came first in the May 6th election, though fell short of an outright majority in parliament.
President Karolos Papoulias failed in a bid to broker a governing coalition in meetings with party leaders in Athens earlier this week.
The political standoff has reignited concern the country will renege on pledges to cut spending as required by the terms of its two bailouts worth €240 billion negotiated since May 2010.
That could leads to funding being cut off and Greece ultimately leaving the euro area.
Syriza leader Alexis Tsipras said yesterday he demanded the caretaker government freeze the implementation of wage and pension cuts and other austerity measures until the elections are held and a new government is formed.
He also called for all state asset sales to be immediately frozen and said Europe must re-examine its policy of austerity and acknowledge it has failed.
The previous prime minister, Lucas Papademos, told his successor that it was important for the country to continue to meet international obligations.
"During this period it's particularly important to fulfill the country's responsibilities because these policies will help the stability of the country," Mr Papademos told Mr Pikrammenos after he was sworn in
The May 6th election left New Democracy and Pasok, the two parties that supported the international rescue in an interim government this year, two deputies short of the 151 seats needed for a majority in Parliament.
Syriza, which advocates cancelling the bailout and nationalising banks, came in second, and resisted pressure to join a coalition government.
Reuters