Greek coalition deal 'in sight' after marathon talks

Athens: A deal on the creation of a new Greek unity government to pull the country out of a debt quagmire and implement a massive EU bailout appeared in sight today after marathon power-sharing talks. “There is a deal under which (Prime Minister George) Papandreou will go to the head of state, President Carolos Papoulias, within the day” to hand in his mandate, upon which all party leaders will be summoned and the new administration will be announced, a government source said. “We hope this is the final lap,” outgoing alternate foreign minister Mariliza Xenogiannakopoulou told state television NET, confirming that announcements were expected “within the day”. [caption id=“attachment_127549” align=“alignleft” width=“380” caption=“Greek Prime Minister George Papandreou will go to the head of state within the day to hand in his mandate, after which the new administration will be announced. Reuters”]  [/caption] “Countdown to new government,” headlined the top-selling Ta Nea daily, adding that announcements were expected by midday. The debt-laden country is under intense international pressure to move swiftly to implement the EU rescue deal and stave off bankruptcy amid fears the crisis in Greece; and now Italy could destabilise the entire eurozone. Former European Central Bank vice-president Lucas Papademos yesterday looked certain to be named interim prime minister in a power-sharing deal between the governing socialist Pasok party and the conservative opposition. But his candidacy seemed to have lost ground, and another contender has come to the fore — 63-year-old Vassileios Skouris, president of the European Court of Justice. “Papandreou to see president within the day, new name on the table,” said centrist Ethnos, adding that Skouris’ candidacy had gained strength. The names of European ombudsman Nikiforos Diamantouros, 69, and 64-year-old former finance minister Panagiotis Roumeliotis, who represents Greece at the IMF, have also circulated in past days. Talks had run into problems yesterday after the opposition New Democracy party rejected EU insistence that a new government agree to the terms of the bailout deal in writing. “The fact that Europe has lost all faith in the (socialist) government’s credibility cannot (be used) to insult our national dignity,” New Democracy spokesman Yiannis Michelakis said in a statement. Eurozone chief policymaker Jean-Claude Juncker demanded on Monday that the rival Greek parties involved in forming the government agree in writing to the terms of the bailout sealed at an EU summit in October. AFP