Julia Gillard will stay as Australia’s prime minister after winning the backing of two key independent MPs.
Tony Windsor and Rob Oakeshott held the balance of power in parliament after a fellow independent MP, Bob Katter, backed opposition leader Tony Abbott.
The dramatic announcement ended more than two weeks of political deadlock following indecisive elections.
It gives Ms Gillard’s Labor Party the backing of one more MP in the lower house than the Liberal-led coalition.
The minority government is Australia’s first since World War II.
“The events of the past fortnight show us unequivocally that our democracy is very, very strong indeed,” Ms Gillard told a news conference in Canberra.
“With today’s agreement… Labor is prepared to deliver stable, effective and secure government for the next three years. Ours will be a government with just one purpose – to serve the Australian people.”
BBC World News