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New Greek government being formed

Monday, November 07, 2011 - 01:44

Nov.07 - German Chancellor Angela Merkel and Greek PM George Papandreou agree that the new Greek transitional government must implement reforms agreed at Brussels summit last month. Kirsty Basset reports

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The old debts remain but Greece will soon have a new leader. Prime Minister George Papandreou decided to stand down on Sunday. He and opposition leader Antonis Samaras have been in talks on forming a new coalition government. Alistair McCaig is a market analyst at World Spreads. (SOUNDBITE)(English) WORLD SPREADS MARKET ANALYST ALISTAIR MCCAIG SAYING: "Mr Papandreou looks like he's stepping down and it looks like Mr Sameras seems to be the man who might take over some sort of coalition party. We need some clarity on exactly how that's going to pan out." It's not yet clear who the new leader will be - but Greek media says Lucas Papademos is a frontrunner. He's the choice favoured by the Athens Chamber of Commerce. (SOUNDBITE)(English) PRESIDENT OF THE ATHENS CHAMBER OF COMMERCE CONSTANTINOS MICHALOS SAYING: "Well Mr Papademos is a technocrat. He was the Governor of the Bank of Greece and until recently the Vice President of the ECB so he knows his way about within the European banking sector and of course within the European Union. So he is the person that could lead this government hopefully successfully." Details on the transition government are thin. But Papandreou has reassured the German Chancellor Angela Merkel the new government will implement all the agreements reached in Brussels last month. The enormity of the task ahead is hard to over-estimate. And there are doubts that a coalition government will be able to push through the deep reforms, unpopular salary cuts and tax measures Greece needs to implement, to stay afloat. Kirsty Basset, Reuters.

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New Greek government being formed

Monday, November 07, 2011 - 01:44