Greek PM to resign after coalition government formed

[reACTIONary]

Source: CNN

Greek Prime Minister George Papandreou will resign after the makeup of the nation's new coalition government is decided, officials said Sunday.

Read more: http://www.cnn.com/2011/11/06/world/europe/greece-main/index.html?hpt=hp_t1

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There was some discussion about whether or not this would occur. Looks like it will.

[still_one]

1. So this is about the third time he said he would step down, then changed his mind /nt

[reACTIONary]

2. Third time a charm? (nt)

[dipsydoodle]

3. BBC TV News ticker here in the UK

says that could be as early as tonight.

[truth2power]

4. Economist Richard Wolff, Professor Emeritus U. Mass...

who I've been relentlessly promoting on DU (not that he needs my help) predicted months ago that Papandreou would go down.

If you want to understand any part of the current financial crisis, you can't do better than to go to his website. Prof. Wolff is a Marxian, BTW.

www.rdwolff.com


edit: spelling. Ugh.

[DCBob]

5. This means the debt deal is on for sure... I think.

That was the final stumbling block for the opposition.

[Katashi_itto]

6. If he goes down the Debt deal is over and Wall Street will be taking a huge Hit Monday. I thought

it would happen. Off by 24 hours dammit. I thought it would happen Friday.

[DCBob]

7. I dont think so. All they need to do is for Parliament to approve the deal..

From what I understand that is pretty much a done deal once the coalition government is formed... regardless if Pap resigns or not.

[DCBob]

8. In fact this is exactly what the opposition wanted..

If he does resign then the opposition should be willing to form a coaltion govt which would then easily pass the debt deal. There are optomistic rumors coming out now..

===========

Some reports say a coalition deal and Mr Papandreou's resignation could be announced as early as Sunday evening. An emergency cabinet meeting was scheduled for 16:00 (14:00 GMT).

Mr Samaras did not state explicitly whether he would join a government of national unity, but said that if the PM resigned, "everything will take its course".

A government official has indicated that a deal is drawing closer. "I believe that we are very close to reaching a consensus," said deputy government spokesman Angelos Tolkas, quoted by Reuters news agency. "We expect New Democracy to make an even more flexible statement in the next hours."

http://www.bbc.co.uk/news/world-europe-15609456

[Demeter]

9. They Can Pass Anything--Even a Ham Sandwich

but that doesn't mean it will actually do anything...or that the people will go along with it, either.

[DCBob]

10. Does that come with chips and a drink?

If so that's a full meal.

Seriously, I also wonder what the reaction of the people will be once this deal is officially passed. It could get ugly and all bets are off what happens next.

[reACTIONary]

11. The uglieness is all over...

... this deal has been in the works for some time, even if the specifics haven't been full nailed down. They know its going to hurt and they have known it for a while. They've gone through the rage and are now becoming adjusted to the reality.

[DCBob]

13. I hope so because I think in the long run this is best for all concerned..

even the people.

[rayofreason]

12. Greece needs to default and exit the euro.

It will mean huge pain for the Greeks as they (forcibly) learn to consume what they produce instead of borrowing from French and Germans, but it the only way forward. To remain under crushing debt without addressing the underlying reasons why that debt is there will only make the problem worse when, in they end, they must default and exit anyway. Argentina did it, and it was really rough for a while, but they pulled through.

Everyone else should get ready for the hit. There is a (foolish) view that "bankers" will lose money. What a load of crap. "Bankers" don't own the money in banks - we do. I wonder how many pension plans in the US own some Greek debt or stock in European banks that might go under, or if your 401K has its fingers there as well. As far as I know, mine (401k, no pension) does not have much - because I have very limited money market accounts and all the bonds are US federal or municipal bonds (which might have similar problems in the not too distant future). But my stocks will take a hit. As long as I don't plan to retire soon, my 200.5k should be enough to see me (modestly) through my later years.

If something can't go on for ever, it won't.

[DCBob]

14. That would prbobably be the best solution if Greece was not so entertwined with the EU.

I dont understand it entirely but the "experts" think if Greece defaults abruptly and completely there will be a "contagion" domino like effect which could cause the entire region to sink into a recession and ultimately adversely effect the entire world economy. It makes sense given what we and world went through in 2008. We must avoid a repeat of that scenario.

[rayofreason]

15. The longer they wait...

...the worse it will be.

Greeks are not Germans and will never be. Trying to lash them together and treat Greek debt like German debt is something that eventually would come apart at the seams.

The Italians are next. The contagion has already spread.

http://www.ft.com/intl/cms/s/0/6d8e1f0e-0477-11e1-b309-00144feabdc0.html?ftcamp=rss#axzz1cxHrgIEG

What we are seeing is the end of the euro. A friend of mine has a buddy who lives near Syntagma Square, across from the central bank. He is keeping an eye out for trucks and extra night time activity that would indicate the printing and distribution of Drachmas. It will happen, sooner or later. It should have happened when the extent of the Greek lies about the debt and deficit totals were revealed last year. The EU should have kicked the Greeks out of the Euro zone then. The damage would have been less. Now, with more good money after bad, "haircuts", etc., everyone can see that the eurozone has no teeth. Soon yields on Italian and (next) Spanish bonds will climb to unsustainable heights. The euro is undone, but Sarkozy would rather hold on as long as possible so that the whole ship goes under rather than recognize reality.

[DCBob]

16. I dont think anyone wants the "whole ship to go under".. except a few doom and gloomers...

The approach is to allow Greece some time to reform its economy and repair the mess it created. It could work if they are serious and given enough time to work it out.

[Roland99]

17. Papandreou to quit as Greece forms new government

Source: MarketWatch

Greece’s main political parties agreed Sunday night to form a new national unit government in a deal that will see Prime Minister George Papandreou step down, according to a media report.

After reaching the outline of the agreement Sunday night, Papandreou and Antonis Samaras, the leader of the opposition party, were to meet Monday to work out details, including selection of a new prime minister, the New York Times reported.

The new coalition government’s first task will be to win parliamentary approval of the debt-bailout package put together by European leaders in October.

Greek President Karolos Papoulias confirmed the report that Papandreou will resign, the Times said.

Read more: http://www.marketwatch.com/story/uncertainty-persists-on-greek-confidence-vote-2011-11-04?link=MW_home_latest_news

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http://www.zerohedge.com/news/and-g-pap-gone
Lucas Papademos will be the new PM with Venizelos and Dimas as deputies.

[DCBob]

18. Leaders in Greece Agree to Form a New Government

Source: NY Times

ATHENS — After crisis talks on Sunday night, Prime Minister George Papandreou and the Greek opposition leader agreed to create a new unity government that will not be led by Mr. Papandreou, according to a statement released Sunday night by the Greek president, who mediated the talks.

Mr. Papandreou and the opposition leader Antonis Samaras agreed to meet again on Monday to hammer out the details of the agreement. The name of the new prime minister is not expected until then.

Mr. Papandreou has faced mounting pressure to resign, including from his own Socilaist Party, so a new unity government can push the European Union’s debt agreement through Parliament, a step European leaders consider crucial to shoring up the euro.



Read more: http://www.nytimes.com/2011/11/07/world/europe/pressure-mounts-on-greek-premier-to-resign.html

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Finally they appear to have worked out an agreement which means the debt deal will be passed. This should calm the fears of a regional and global economic meltdown.. at least in the short term.

[teddy51]

19. Next question will be, how will the Greek people view this? Will it calm the unrest

in Greece or not?

[DCBob]

20. Thats a good question.. I have no idea.

We shall soon see.

[midnight]

21. I'm not sure a debt deal is best for the 99%....

I'm under the impression that the 99% were going to pull an Iceland, tell them to shove their deal some where else,so as not to saddle the country with the debt of the 1%....


This whole mess might be handed over to a banker?

"Mr. Papandreou might resign to make way for a unity government of politicians from the Socialist and New Democracy parties be led by a non-political figure. One name being mentioned as a possible leader is Lukas Papademos, a former governor of the Bank of Greece. "

[dipsydoodle]

22. Greeks agree coalition government without Papandreou

Greek leaders at crisis talks in Athens have agreed to form a new coalition government, the president's office says.

Beleaguered PM George Papandreou will step aside and his successor will be chosen at talks in the morning, the statement said.

http://www.bbc.co.uk/news/world-europe-15614883

[DJ13]

23. Greek LEADERS agree

Thats not the same as the Greek people agreeing.

[YvonneCa]

24. Glad to hear this. Thanks for...

...posting. :)

[dipsydoodle]

25. General Erection announced for February 19th 2012

Just been announced. Look for links - literally only a few minutes ago

[DCBob]

26. National Orgy to follow soon thereafter.

;)

[dipsydoodle]

27. I said that because

announcing it will give the financial world a stiffy today.

:hi: