Excerpt
Prime Minister George Papandreou of Greece survived a crucial confidence vote in the Greek Parliament early on Saturday, a vote that signaled approval of the comprehensive deal reached by European leaders last week to stabilize the euro and to help Greece avoid defaulting on its debt.
Mr. Papandreou pledged to form a unity government with a broader consensus, regardless of whether he would lead it, and met with President Karolos Papoulias to explore the composition of a transitional government.
According to media reports, Mr. Papandreou told the Greek president that the country needed to forge a political consensus to prove it wanted to keep the euro. “In order to create this wider cooperation, we will start the necessary procedures and contacts soon,” Reuters quoted Mr. Papandreou as saying.
"Greek Leaders Reach Deal to Form a New Government" by RACHEL DONADIO and NIKI KITSANTONIS, New York Times 11/6/2011
Excerpt
Prime Minister George A. Papandreou and his chief rival agreed Sunday night to create a new unity government, under a new prime minister, that will move ahead with the country’s debt-relief deal with the European Union and then hold new elections. Mr. Papandreou agreed to resign once the details are completed on Monday.
The agreement appeared to break a political deadlock that had paralyzed Greece in the face of an acute financial crisis that threatened to infect other euro-zone nations, especially Italy. European leaders see the debt-relief deal struck with Greece on Oct. 26 as crucial to containing the crisis in Greece and insulating Italy, a much larger economy whose political leaders have also struggled to cut budgets and deal with heavy debt.
The agreement in Greece could not have come soon enough for its European partners, who have pressed the country hard to forge a broader political consensus behind the debt deal. But it was not clear whether the agreement would provide the certainty that skeptical investors are demanding to calm turbulent financial markets.
The debt deal requires that the Greek Parliament pass a new round of deeply unpopular austerity measures, including layoffs of government workers, in a climate of growing social unrest. It also calls for permanent foreign monitoring in Greece to ensure that it makes good on its pledges of structural changes to revitalize its economy, a requirement that many Greeks see as an affront to national sovereignty.
With a narrow and eroding majority in Parliament, Mr. Papandreou’s Socialist government found that it could not unify to push through such measures on its own, but Antonis Samaras, the leader of the conservative New Democracy party, opposed many of the debt deal’s provisions and demanded Mr. Papandreou’s resignation and a snap election. After days of frantic political wrangling, Mr. Papandreou survived a confidence vote in Parliament on Friday, setting the stage for Sunday’s compromise.
The new unity government, in which the major parties would share power, is widely expected to be led by a nonpolitician and to govern for several months, long enough to carry out the debt deal and pass a budget for 2011. The name of the new prime minister and the composition of the new cabinet are not expected to be announced until Monday, when the leaders will meet again, according to a statement Sunday night by the Greek president, Karolos Papoulias, who moderated the talks on Sunday.
COMMENT: Even though there are things I admire about Parliamentary Government, this is an example of one of it's BIG drawbacks.
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