ATHENS - A coalition government could be formed by midday Wednesday in Greece, the head of the country’s socialist party said Tuesday, easing the nation from political limbo as it struggles to deal with a financial crisis that has affected Europe’s economy and markets around the world.

Evangelos Venizelos, whose PASOK party came third in Sunday’s elections, said the socialists “will support this government sincerely and will participate in it in the most beneficial way in order to make it effective and credible.’’