Greeks strive to create coalition, save bailout
Source: Agencies |
November 7, 2011, Monday
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GREEK leaders struggled for a second day yesterday to end an ongoing political crisis, under intense pressure to ensure the country doesn't go bankrupt in the next few weeks and that it remains in the eurozone.
Embattled Prime Minister George Papandreou, who narrowly survived a parliamentary confidence vote on Saturday, said he is prepared to step down once political leaders agree on an interim government to lead the country through the next four critical months.
The new government would secure a new European debt deal agreed on little more than a week ago, and ensure the country receives a critical installment of bailout loans. Then elections could be held in late February.
But Antonis Samaras, the leader of the main conservative opposition New Democracy Party, said yesterday no talks between the two parties were taking place and he reiterated his stance that Papandreou must resign before any coalition discussions can take place.
That has been the main sticking point in forming an interim government.
Papandreou, who chaired an emergency Cabinet meeting yesterday evening, said in a statement he had contacted the country's president, asking him to chair a meeting with him and Samaras in order to find a solution "soon."
The president has agreed to convene Papandreou and Samaras if they agreed on procedure for a meeting, state television said without elaborating.
Greek politicians were hoping to arrive at a solution by last night, so the country could attend a meeting of eurozone finance ministers in Brussels today with a semblance of stability.
"It is evident that the entire government can and will resign once the national cooperation and discussions result in a new government," said Interior Minister Haris Kastanidis as he arrived for the Cabinet meeting.
"There is a eurogroup tomorrow. If the government resigns today without there being a new government, who will hold talks at the eurogroup?" Kastanidis asked.
Greece has been surviving since May 2010 on a first US$152 billion bailout. But its financial crisis was so severe that a second rescue was needed as the country remained locked out of international bond markets by sky-high interest rates and facing an unsustainable national debt increase.
The new European deal, agreed on by the 27-nation bloc on October 27 after marathon negotiations, would give Greece an additional US$179 billion in rescue loans and bank support. It would also see banks write off 50 percent of Greek debt, worth some US$138 billion. The goal is to reduce Greece's debts to the point where the country is able to handle its finances without relying on constant bailouts.
Embattled Prime Minister George Papandreou, who narrowly survived a parliamentary confidence vote on Saturday, said he is prepared to step down once political leaders agree on an interim government to lead the country through the next four critical months.
The new government would secure a new European debt deal agreed on little more than a week ago, and ensure the country receives a critical installment of bailout loans. Then elections could be held in late February.
But Antonis Samaras, the leader of the main conservative opposition New Democracy Party, said yesterday no talks between the two parties were taking place and he reiterated his stance that Papandreou must resign before any coalition discussions can take place.
That has been the main sticking point in forming an interim government.
Papandreou, who chaired an emergency Cabinet meeting yesterday evening, said in a statement he had contacted the country's president, asking him to chair a meeting with him and Samaras in order to find a solution "soon."
The president has agreed to convene Papandreou and Samaras if they agreed on procedure for a meeting, state television said without elaborating.
Greek politicians were hoping to arrive at a solution by last night, so the country could attend a meeting of eurozone finance ministers in Brussels today with a semblance of stability.
"It is evident that the entire government can and will resign once the national cooperation and discussions result in a new government," said Interior Minister Haris Kastanidis as he arrived for the Cabinet meeting.
"There is a eurogroup tomorrow. If the government resigns today without there being a new government, who will hold talks at the eurogroup?" Kastanidis asked.
Greece has been surviving since May 2010 on a first US$152 billion bailout. But its financial crisis was so severe that a second rescue was needed as the country remained locked out of international bond markets by sky-high interest rates and facing an unsustainable national debt increase.
The new European deal, agreed on by the 27-nation bloc on October 27 after marathon negotiations, would give Greece an additional US$179 billion in rescue loans and bank support. It would also see banks write off 50 percent of Greek debt, worth some US$138 billion. The goal is to reduce Greece's debts to the point where the country is able to handle its finances without relying on constant bailouts.
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