Papandreou Out, Papademos In

According to the news agency Reuters, Greek party leaders have agreed on Lucas Papademos, a former top European Central Bank official, to head a new interim government until early elections, the president’s office said on Thursday. The announcement ends a three-day deadlock between the country’s two main political parties over who will lead an interim government to finalize talks for an aid payment to avoid a financial meltdown.

Papademos will succeed outgoing Prime Minister George Papandreou, who won a tight vote of confidence Saturday, only to announce a day later that he would step down in favor of a new leader to head a government of national unity. Greek lawmakers on all sides had called on Papandreou to step down.

Greek President Karolos Papoulias said on Thursday he has instructed Mr. Papademos to form a government after chairing a meeting of almost five hours with outgoing Prime Minister George Papandreou, the leader of New Democracy Antonis Samaras and Georgios Karatzaferis, leader of the smaller nationalist party.

“It was agreed that the goal of the new government is to implement decisions relating to the Oct. 26 summit and implement the economic policy connected to these decisions,” Greek President Papoulias said.

“He is the best possible choice there could have been, a very positive development. He’s knowledgeable, experienced and has the prestige required for this position,” Yannis Stournaras, director of Greece’s Foundation for Economic and Industrial Research and a former government adviser, said after the announcement.

The new government will implement the 130-billion-euro bailout deal agreed with the European Union and will be sworn at 1200 GMT on Friday, the Greek presidency said. The new government headed by Papademos is expected to last approximately three months until a general election is held in mid-February.

Without the aid, Greece would default in a matter of weeks.

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Danny is the old hat at Active Investor. One of the been around the block a few times traders, his main focus is on overall market conditions. Be it some new merger talk or Washington being Washington, you can expect Danny will be on top of it.
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