Greece's two main parties negotiating over who will be PM
ATHENS, Greece -- Greece's two main parties were negotiating Monday over who will be the country's new prime minister after Socialist leader George Papandreuou agreed to step down and allow a eurozone cash-infusion to prevent the country's default temporarily.
But many Greeks question whether a new unity government between two opposing parties would help their situation.
"The Greek people don't agree — all the polls show it," said Leonidas Vatikiwtis, a professor of political economy at the Varna Free University of Cyprus. "My opinion is that the new government isn't legitimate. It's a constitutional coup and its only purpose is to implement the (the rescue package)."
The leaders of the Socialist party and the New Democracy party, Antonis Samaras, spent Monday concluding a power-sharing deal that will install an interim government for 15 weeks in order to pass a rescue package agreed to by the EU two weeks ago: It includes a second bailout for Greece and forgiveness of 50% of Greek debt to banks and private investors.
Former European Central Bank vice president Lucas Papademos is the top choice for the interim leader position until new elections, expected to be held Feb. 19. He had yet to accept the job.
"Mr. Lucas Papademos is a good representative of the banks and their capital," said Irini Papageorgiou, 67, who is retired and a former small-business owner in Athens. "He's the best person to safeguard (the capital's) interests and not the people's. But, they should know that the people are ready to revolt."
The European Union on Sunday gave Greece 24 hours to conclude a deal in advance of a meeting of eurozone finance ministers, known as the Eurogroup, expected to hammer out further details of the rescue package Monday.
European leaders signaled openly for the first time last week that they would consider a eurozone without Greece as a member and would withhold $11 billion in bailout funds, money Greece needs before the middle of December to stay solvent, analysts say.
Germany's Economic Minister Philipp Roesler said Greece needs to give its partners in the EU a signal that it is serious about the rescue package and getting its house in order.
"The Greeks have the choice: reform and stay in the eurozone or no reform and get out," he told German tabloid Bild.
Even though the Greek political deal is on the verge of being finalized, it hasn't alleviated concerns over the financial or political situation in Greece or whether it would remain part of the eurozone. Those fears were exacerbated after Papandreou announced that the rescue package would be put to a public vote last week. The referendum was shelved Friday even though it took two more days before the opposition agreed to back off demands for an immediate election.
"This was not a card game, it was about keeping the country on its feet," Justice Minister Miltiadis Papaioannou told Antenna television.
Even so, the political turmoil in Greece is only the latest frustration for Greeks dealing with a deepening economic crisis and austerity measures as the country tries to stay afloat.
"With the new unity government, nothing is going to change," said Kostantinos Geormas 27, of Athens and an entertainment writer. "Taxes will remain high, and the worst is that things will just get worse with the new austerity measures coming. Let's not make fools of ourselves, nothing is going to change."
