Greek opposition says coalition must keep economic team

ATHENS (Reuters) - Greece's conservative opposition wants to keep the outgoing socialist government's economic team, including Finance Minister Evangelos Venizelos, in the new coalition for the sake of continuity in a time of crisis, a party official said on Monday.

The New Democracy party would support the coalition, which is due to govern until elections in February, but wanted to play no direct part in it, the official told Reuters on condition of anonymity.

It would vote for the 2012 austerity budget and a new international bailout for Athens, as well supporting completion of a bank bond swap deal to reduce Greek debt.

"We have committed ourselves and we will honor our commitments," the source said. "The economic ministries, such as Finance Minister Venizelos and his team, should stay for the sake of continuity."

New Democracy wanted the coalition to have as many technocrats as possible and the party would not put forward any of its members for cabinet posts, he added.

The party had long objected to austerity policies prescribed in multi-billion international bailout plans for Greece, saying they stifled economic growth.

However, under pressure from the EU and some of its own deputies, it eased these objections to consent to the coalition.

Conservative leader Antonis Samaras sealed a deal on Sunday to form a coalition government with Prime Minister George Papandreou, who will step down in favor of a mutually agreed candidate.

Former ECB vice-president Lucas Papademos, who flew to Athens on Monday, was tipped as a favorite but New Democracy sources said the deal was not done yet.

LIFTING OBJECTIONS

New Democracy voted against an initial 110 billion-euro bailout last year and long objected to prescribed policies, such as tax hikes, which it said stifled growth and plunged Greece deeper into recession.

But it has agreed to some of the policies the socialists put forward, such as privatization and market liberalization reforms. "We will not co-govern but we will fully support the transitional government," the official said.

New Democracy does not want any seats in the new government but demands that ministries that are key to the elections, tentatively agreed for February 19, will be taken out of socialist hands and handed to non-party technocrats or neutral figures.

These include the portfolios of Justice, Defense, Interior and Administrative Reform, the official said.

A memo sent to party members asking for support and explaining New Democracy's position rattled some in Athens who said it showed lack of commitment to the deal.

"In this transitional 100-day period we support what has been voted on so we can change it later," said the letter obtained by Reuters. "We will not accept new measures, that is our red line."

The official said the memo explains to party members that the conservatives will support the coalition to avert immediate default and go to orderly elections so that it can renegotiate parts of the bailout deal that are not working.

"We will try to change, in a benign way, the policy mix that is not working," the official said.

(Reporting by Dina Kyriakidou; editing by Andrew Roche)