The Hitch in Greece: The Nationalist Who Delayed the Transition

by Joanna Kakissis

Time
November 8, 2011

On Tuesday, everyone expected economist Lucas Papademos to become the interim prime minister of a unity government, one that would keep Greece from defaulting on its massive sovereign debt, as a result, upending the eurozone. But the day didn't end as expected. The former European Central Bank vice president had to wait to replace beleaguered premier George Papandreou, whose PASOK government has absorbed public anger at austerity measures imposed on the country in exchange for international bailout loans. Instead, Tuesday ended in stalemate — one that was embodied in Antonis Samaras, the leader of the conservative New Democracy party and one of Papandreou's most vocal critics. Observers and insiders instead said Wednesday would be the day all would come to pass.

The sticking point appeared to be a request by Jean-Claude Juncker, chief of the Eurogroup that's comprised of the European Union finance ministers, for Greek leaders to agree in writing to the terms of the latest bailout deal that eurozone leaders negotiated last month. Five Greek official had to co-sign, including Papandreou and Samaras. But hours after that list was announced, Samaras balked. He insisted that he supports the Oct. 26 bailout deal "to protect the Greek economy and the euro." He just did not want to commit to the plan in writing. (Actually, he and his New Democracy deputies have voted against all bailout measures in parliament.)

Some analysts say Samaras is trying to position himself for life after the coalition government, when Greece holds new elections in February. With the ruling PASOK party in tatters, Samaras, a Harvard-educated economist from an aristocratic family, hopes voters will see him and his center-right New Democracy party as the saviors of Greece in a post-Papandreou world. Samaras has been bitterly critical of Papandreou, his former roommate at Amherst College, often calling him a liar and accusing him of blackmailing the Greek public. He blames Papandreou's government for creating "a climate of fear" during the debt crisis and killing the economy through the budget cuts and tax hikes of austerity.

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