Open

Coming up

Don't miss

Replay


LATEST SHOWS

WEB NEWS

Chile: Online mobilization to help Valparaiso fire victims

Read more

ENCORE!

Art, sex, money, memory and manga

Read more

MIDDLE EAST MATTERS

Spat over Iran's UN ambassador hampers thawing relations with US

Read more

FOCUS

China trade deal: Is Taiwan's identity under threat?

Read more

IN THE PAPERS

'Call it a caretaker government'

Read more

DEBATE

Nigeria's Battles

Read more

DEBATE

Nigeria's Battles (part 2)

Read more

MEDIAWATCH

Pornography without borders is key benefit of EU, says French MEP

Read more

BUSINESS DAILY

Google Glass sale a test of consumer interest

Read more

  • Putin says Ukraine 'on brink of war' as separatists hoist Russian flags

    Read more

  • France's new PM targets welfare in drive to cut spending

    Read more

  • Rescue effort under way as ferry sinks off S. Korean coast

    Read more

  • Brazil club Atletico Mineiro cancel Anelka signing after no-show

    Read more

  • Syria 'torture' photos silence UN Security Council members

    Read more

  • Paris laboratory loses deadly SARS virus samples

    Read more

  • More than 100 schoolgirls kidnapped in northeast Nigeria

    Read more

  • New York police disband unit targeting Muslims

    Read more

  • 'Miracle girl' healthy after seven-organ transplant in Paris

    Read more

  • Paris police memo calling for Roma eviction ‘rectified’

    Read more

  • Burgundy digs into France's bureaucratic 'mille-feuille'

    Read more

  • French court drops ‘hate speech’ case against Bob Dylan

    Read more

  • Algeria rights crackdown slammed ahead of election

    Read more

  • Iraq closes notorious Abu Ghraib jail over security fears

    Read more

  • Berlusconi sentenced to community service for tax fraud

    Read more

  • In ‘Tom at the Farm’, Xavier Dolan blends Hitchcock and homoeroticism

    Read more

  • US to mark one year since Boston Marathon bombing

    Read more

  • India's Supreme Court establishes third gender category

    Read more

  • Bluefin-21 'mini-sub' redeploys for Malaysian jet

    Read more

  • Paris hotel that hosted Holocaust survivors shuts for renovation

    Read more

  • France looks to lift ailing economy with business-friendly diplomacy

    Read more

Europe

Papandreou seeks new coalition after surviving crucial vote

©

Video by Aude Soufi , Sammy BERRAHMOUN

Text by News Wires

Latest update : 2011-11-05

Having narrowly survived a confidence vote, Greek Prime Minister George Papandreou met President Karolos Papoulias on Saturday in a bid to form a new coalition government that would push through a vital but unpopular €130 billion bailout package.

AP - Greece’s prime minister struggled Saturday to form a temporary coalition government in the near-bankrupt country, extending a political deadlock threatening billions in international rescue funds.

In an impassioned plea to parliament late Friday, George Papandreou agreed to step aside as premier if necessary to help hammer out a coalition, offering to include the conservative opposition party - a possibility swiftly rejected by its leader.

Papandreou said a new coalition government would need four months to secure the new €130 billion ($179 billion) rescue agreement and demonstrate the country’s commitment to remaining in the eurozone. “Cooperation is necessary to guarantee - for Greece and for our partners - that we can honor our commitments,” Papandreou said at a meeting Saturday with President Karolos Papoulias, hours after his Socialist government narrowly survived a confidence vote.

“I am concerned that a lack of cooperation could trouble how our partners see our will and desire to remain in the central core of the European Union and the euro.”

But Papandreou’s plea was snubbed by conservative opposition leader Antonis Samaras.

“We have not asked for any place in his government. All we want is for Mr. Papandreou to resign, because he has become dangerous for the country,” Samaras said in a televised address. “We insist on immediate elections.” Samaras was due to meet the president at 1:00 p.m. (1100GMT) Sunday. Frustrated with Greece’s protracted political disagreements, the country’s creditors have threatened to withhold the next critical €8 billion ($11 billion) loan installment until the new debt deal is formally approved in Greece.

Greece is surviving on a €110 billion ($150 billion) rescue-loan program from eurozone partners and the International Monetary Fund. It is currently finalizing a second major deal: to receive an additional €130 billion ($179 billion) in rescue loans and bank support, with banks agreeing to cancel 50 percent of their Greek debt.

Midway through his four-year term, Papandreou was forced by his austerity-weary Socialist party into seeking cross-party support after he abandoned a disastrous proposal to hold a referendum on a new European debt deal - which prompted havoc on world markets and anger from creditors. Papandreou’s popularity has been battered by two years of punishing austerity, causing crippling strikes, violent protests and sharp drop in living standards for ordinary Greeks who face repeated rounds of tax hikes and cuts in pension and salaries.

Could Greece quit the eurozone?

Late Friday, Papandreou won a confidence vote in the Socialist-led parliament on a pledge that he was willing to quit and form a caretaker coalition.

But he insisted an immediate election would paralyze government and endanger the new rescue deal.

The conservative snub left Papandreou with limited options: negotiating with conservative splinter groups and independents to attract consensus, and possibly invite respected non-politicians to join the effort. “(Papandreou) will not resign immediately and he cannot resign before there is a new government. What remains to be seen is how flexible he will be in seeking a different governmental makeup,” Ilias Nicolacopoulos, a prominent political analyst told AP television. “There will be a tough game of poker.”
 

Date created : 2011-11-05

  • GREECE

    Papandreou survives confidence vote

    Read more

  • GREECE

    Greek leaders break ranks over referendum on bailout

    Read more

  • EUROZONE

    A seven-point summary of the Eurozone crisis summit

    Read more

Comments

COMMENT(S)