Three liberal groups that backed Ukraine's pro-Western "Orange Revolution" signed an agreement today to create a coalition government after nearly three months of divisive talks.
Yulia Tymoshenko, who is to be reinstated as prime minister under the deal, announced its signature to parliament. The coalition is made up of President Viktor Yushchenko's Our Ukraine party, Tymoshenko's bloc and the Socialist Party.
Yulia Tymoshenko announces that liberal parties agreed to create a coalition at a parliamentary session in Kiev.
"I have the great honour to announce the news awaited by the country for many months," Ms Tymoshenko told parliament.
Recalling that June 22nd marked the 65th anniversary of the Nazi invasion of the Soviet Union, she said: "Today we begin our fight to make our country democratic and free of corruption."
The "Orange Revolution" allies have been at odds since Mr Yushchenko, committed to nudging Ukraine towards European Union and Nato membership, fired the Ms Tymoshenko less than eight months into her mandate as premier.
Ms Yushchenko's party's allies have proposed as parliamentary speaker confectionery and media magnate Petro Poroshenko - Mr Tymoshenko's most vocal critic during her time in office.
Under new constitutional rules, the president has ceded many powers to parliament, which must form a majority within a 30-day deadline expiring this week.
The assembly also chooses the prime minister and has a further 30 days to produce a cabinet line-up. The three parties won 243 of 450 assembly seats.
Mr Yushchenko, still a key player, accused Ms Tymoshenko of excessive ambition before relenting and agreeing she could return as premier.
The president - as set down by the constitution - is to be allowed to propose the defence and foreign ministers, who could well remain in their jobs.
Ms Tymoshenko's bloc wants the finance and energy ministries and those portfolios could change hands.