Greek Parties Near Agreement on Government Not Led by Papandreou

Bloomberg
November 6, 2011

Greek Prime Minister George Papandreou, trying to preserve international aid before the nation runs out of money next month, raced to form a unity government after the opposition’s leader demanded he step down before he would sign up to an agreement.

The parties were nearing an agreement on a unity government with the main sticking point being a demand by New Democracy, Greece’s largest opposition party, that Papandreou resign before a deal is concluded, deputy government spokesman Angelos Tolkas told state-run NET TV.

“I think we are close on a level of consensus on the big picture and on support for the Oct. 26 accord,” Tolkas said, referring to Greece’s agreement with international lenders last month. “Steps must be taken back, especially concerning New Democracy’s position.”

Opposition LAOS party leader George Karatzaferis said a new premier had been decided even as details remained to be worked out. He didn't identify the new prime minister. Papandreou's resignation was “a formality,” he said.

New Democracy leader Antonis Samaras had earlier said he was “determined to help” reach an agreement as long as the premier stepped down first. Samaras, who had previously demanded elections and balked at joining forces with Papandreou’s socialist Pasok party even if the premier resigned, spoke after meeting with Greek President Karolos Papoulias in Athens today.

Finance Minister Evangelos Venizelos has said he wants a unity government agreed on before euro-area finance ministers meet in Brussels tomorrow, and government spokesman Elias Mosialos said a deal must come by this evening. “It would be useful today, tomorrow at the latest, to have agreed on the name of the new prime minister as well,” Mosialos said in remarks broadcast on NET TV today.

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