Greek PM, opposition reach power-sharing deal - BusinessWeek
Greece’s embattled prime minister and main opposition leader agreed Sunday to form an interim government to ensure the country’s new European debt deal, capping a week of political turmoil that saw Greece face a catastrophic default that threatened its euro membership and roiled international markets.
As part of the deal, Prime Minister George Papandreou agreed to step down halfway through his four-year term. He and conservative opposition head Antonis Samaras are to meet Monday to discuss who will become prime minister and the makeup of the Cabinet.
The new unity government’s main task will be to pass the European rescue package, reached after marathon negotiations between European leaders barely a week ago — a move considered crucial to shoring up the euro. The interim government will then lead the country into early elections, expected early next year.
Officials had been anxious to reach some form of agreement before a meeting of eurozone finance ministers in Brussels on Monday.
“Of course it’s a breakthrough,” government spokesman Elias Mossialos said. “It is a historical day for Greece, we will have a coalition government very soon, early next week. The prime minister and the leader of the opposition will discuss tomorrow the name of the new prime minister and the names of ministers.”