Greek Coalition Government to be Named Monday

Posted November 7th, 2011 at 2:20 am (UTC-5)
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Greek Socialist Prime Minister George Papandreou and conservative opposition leader Antonis Samaras meet again Monday to pick a new caretaker prime minister and Cabinet ahead of a eurozone finance ministers' meeting Monday. The finance ministers will decide whether to release an additional $11 billion in bailout funds.

Mr. Papandreou is stepping down in favor of a short-term coalition government charged with approving a new European Union bailout. The deal requires Greece to raise taxes and make deeper cuts in government jobs and pensions.

The coalition will last until new elections, preliminarily scheduled for February 19.

Mr. Papandreou will not lead the new coalition. It is not clear if he plans to run again next year.

A Greek government spokesman said that Sunday was a historic day for Greece, with the prime minister agreeing to give up power to possibly save the country from bankruptcy. But many ordinary Greeks, who say they have sacrificed enough, say all politicians are the same and that new elections are meaningless.

Greece's political crisis was set off by Mr. Papandreou's surprise announcement last week that he would put the terms of the EU deal for Greece to a referendum. The proposal shocked the country and stunned the EU. The prime minister backed down from that referendum plan under pressure from the EU and his own government.

European leaders have called on Greece to approve the new bailout plan and implement the terms of last year's rescue package by the EU and International Monetary Fund.

Greek Finance Minister Evangelos Venizelos has said Greece needs the next $11 billion installment of its existing bailout by December in order to avoid bankruptcy.