Greek leaders agree to unity government as future hangs in balance

Guardian
November 7, 2011

Greece's economic and political future – and with it the fate of the eurozone – hung in the balance on Sunday after its political leaders announced that the formation of a government of national unity would have to wait until Monday morning at the earliest – well after global financial markets had opened.

Amid fears of the crisis worsening and the political situation in debt-laden Italy further imperilling the single currency, party heads in near-bankrupt Greece said while agreement had been reached on an interim coalition government, further talks were required on the new administration's life span and who would lead it.

A statement issued after crunch talks between embattled prime minister George Papandreou, opposition leader Antonis Samaras and head of state Karolos Papoulias confirmed that the socialist premier had agreed to resign midway through his four-year term in office and would not be at the helm of the government.

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