Syriza leader Alexis Tsipras has been sworn in as Greek Prime Minister after his party swept to power on a campaign to end austerity and renegotiate the country's debt.
Mr Tspiras, 40, is the youngest Greek prime minister in 150 years.
Wearing a blue jacket and white shirt, characteristically without a tie, he also broke with tradition by taking a civil instead of a religious oath, pledging to "always serve the interests of the Greek people".
The small Greek nationalist Independent Greeks party will join a coalition government under Syriza, their leader has said.
"From this moment on there is a government, we will give a vote of confidence to the new prime minister," Independent Greeks leader Panos Kammenos said.
His comments came after a meeting with Mr Tsipras.
With most of the votes in yesterday's general election counted, Syriza won 149 seats, just short of an overall majority.
The euro fell to $1.10 on news of the result, its lowest level in 11 years and Greek stocks opened 2% down this morning.
The result will dominate today's meeting of eurozone finance ministers in Brussels.
Syriza's victory could mark a decisive shift in the ongoing eurozone debt problems.
Speaking before jubilant supporters last night, Mr Tsipras said it would bring an end to the programme of budget cuts and reforms which he referred to as "the memorandum of catastrophe".
During the campaign, Mr Tsipras promised to cut Greece's €320 billion debt in half.
Greek election - key points
He said the new Greek government would be ready to negotiate with its eurozone partners what he called a new sustainable solution.
Mr Tsipras, speaking in central Athens, also said his party's victory made the "Troika a thing of the past".
"The verdict of the Greek people ends, beyond any doubt, the vicious circle of austerity in our country," Mr Tsipras said.
"The verdict of the Greek people, your verdict, annuls today in an indisputable fashion the bailout agreements of austerity and disaster.
"The verdict of the Greek people renders the troika a thing of the past for our common European framework."
Although Syriza has fallen just short of an overall majority, the scale of the victory, just over 35%, will significantly alter the balance of political opinion in Europe about how to restore economic growth.
It will strengthen the hand of those in the centre left, like French President Francois Hollande and Italian Prime Minister Matteo Renzi who have argued that austerity has run its course.
A spokesperson for Angela Merkel said the German chancellor expects the new Greek government to uphold its commitments to international creditors.
"In our view it is important for the new government to take action to foster Greece's continued economic recovery," the spokesman, Steffen Seibert, told reporters. "That also means Greece sticking to its previous commitments."
Without the Troika there will be 'no further loans'
A leading member of Germany's ruling party has said he expects that Mr Tsipras will default on his election promises, do a deal with Europe and accept austerity.
Michael Fuchs, vice president of the CDU/CSU group, said if he wants to stay in the eurozone and if he wants further loans, then he has to stay with the austerity. If not then he has to find another way.
Mr Fuchs said that despite the election of the anti-austerity party, Greece still owes money that must be re-paid.
He said the loans were given to Greece under contract with very clear conditions attached and they were willing to continue that arrangement.
But he added that the Troika will make the decision and whether Mr Tsipras likes it or not, without the Troika there will be no further loans.
Mr Fuchs said Greece still needs money and if it does not get it from the EU or Troika via the European Stability Mechanism, then it might be difficult to get it from other places.
He said he did not feel Greece was already prepared to come back to the financial market and that the country needs to be more competitive.
An executive board member at the European Central Bank has said it cannot take part in any debt cut for Greece.
In a newspaper interview, Benoit Coeure said: "It is not up to the ECB to decide whether Greece needs debt relief", adding this was a political decision.
Minister for Foreign Affairs Charlie Flanagan said there is much speculation about the change of government in Greece, but its very early to speculate on implications for the eurozone and the EU.
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