Greek leaders discuss new government amid debt crisis…
Athens, Greece (CNN) – Greece’s prime minister and the head of the country’s main opposition party spoke on the phone Monday, but leaders offered few details and it was unclear whether they had agreed on a possible new prime minister for the nation.
The conversation came a day after President Karolos Papoulias announced that Prime Minister George Papandreou will step down amid the country’s financial crisis — so long as a controversial 130 billion euro bailout deal is approved.
On Sunday, Papandreou met with Antonis Samaras — the leader of the New Democracy party, Greece’s leading opposition party — and agreed to form a new government.
The two were scheduled to discuss who will serve in the new government as well as who will be the next prime minister in a meeting Monday, according to a statement from the president Sunday.
The move could close one chapter in Greece’s tumultuous political and economic saga, as Papandreou had become a lightning rod for critics for his leadership of the south European nation as it tackles a prolonged financial plight.
It also could pave the way for passage of an agreement that Papandreou negotiated October 26 with European leaders. That deal would wipe out 100 billion euros in Greek debt, half of what it owes. It also includes a promise of 30 billion euros to help the public sector pare its debts, making the whole package worth a total of 130 billion euros (nearly $180 billion).
A spokesman for the opposition New Democratic Party said Papandreou and Samaras had spoken on the phone, and the new premier’s name would be announced Monday. The spokesman did not provide additional information.
New national elections will be held sometime after the bailout is implemented, officials said.
After late-night discussions involving representatives from both main parties Sunday, Finance Minister Evangelos Venizelos said on his website that February 19 appeared the most likely date for those elections to take place.
Greece’s turmoil is far from over. The bailout, the second it has received from the European Union and International Monetary Fund, would be accompanied by additional austerity measures such as slashing government jobs, privatizing some businesses and reducing pensions. It comes at a time when Greece’s economy — and to some extent the global economy — is still staggering.
Though Greece ranks 32nd in terms of gross domestic product, experts say it wields a disproportionate influence internationally. Economists worry that a Greek default on its debt could pull down larger European economies, particularly those of Italy and Spain, as well as struggling Portugal and Ireland.
Eurozone finance ministers are scheduled to meet Monday in Brussels, Belgium.
Within Greece, the bailout’s passage would be a significant victory for Papandreou. He has insisted repeatedly in recent weeks that it needs to be approved, and signaled that he’d be willing to resign as prime minister, a job he has held since 2009, so long as that happens.
Venizelos is likely to remain in his post as finance minister in a new government, sources told Greek television.
Candidates for the prime minister’s job include Petros Moliviatis and Loukas Papademos, according to Greek television.
The new government will have a life of four months, according to Greek television, citing sources, and elections will take place in early spring.
On Monday, the Greek president was scheduled to hold a meeting open to heads of all Greek political parties.
CNN’s Diana Magnay, Jim Boulden and Andrew Carey in Athens and Matthew Chance and Hada Messia in Rome contributed to this report.
