Wednesday, February 1, 2012

Greek Leader Seeks Support

Wall Street Journal
February 1, 2012

Greek Prime Minister Lucas Papademos has launched a bid for broad political backing for the painful reforms needed to get a new loan deal, a process that risks becoming politicized with new elections expected later this spring.

Mr. Papademos will meet in the next few days with the heads of the three political parties making up his coalition government to approve the terms of the country's second loan deal, government spokesman Pantelis Kapsis said Wednesday.

Mr. Kapsis told reporters that a deal on a new €130 billion ($170.01 billion) loan package was almost in hand. But before proceeding, Mr. Papademos wants to get the green light from the three party bosses on the tough measures Greece will need to adopt in exchange for that loan.

"The [loan] agreement will happen with the mutual decision of the political leaders," Mr. Kapsis said. "They will be called on to take very serious decisions."

The appeal for consensus appeared aimed at preventing Greece's reform drive from being further strained by political bickering on the public stage. Signs of political discord in Greece could weaken the appetite of the country's official and private-sector creditors to sign up to a costly new bailout agreement.

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