Greek parties bicker as Europe demands clarity

1 of 13. Greek President Karolos Papoulias shakes hands with leader of conservative New Democracy party Antonis Samaras (L) inside the presidential palace in Athens November 6, 2011.

Credit: Reuters/John Kolesidis

By Dina Kyriakidou and Lefteris Papadimas

ATHENS | Sun Nov 6, 2011 8:05am EST

ATHENS (Reuters) - Greek party leaders bickered on Sunday over the formation of a crisis coalition, with the finance minister under pressure to secure rescue funding by telling his European peers within 24 hours that the nation can restore political stability.

In the hunt for an elusive national consensus, President Karolos Papoulias met the conservative opposition leader, shortly before the socialist cabinet was due to hold a special session.

"This uncertainty that is torturing the Greek people must end. We must find a solution," Papoulias said before starting closed-door talks with New Democracy leader Antonis Samaras.

But Samaras rejected any compromise while George Papandreou remains prime minister.

"I am determined to help. Provided that Papandreou resigns, everything will take its course," he said after the talks, without saying explicitly whether he would join a coalition.

The president has called on parties to cooperate in resolving the crisis after a tumultuous week when Papandreou first announced and then ditched a plan for a popular vote on a euro zone bailout, leaving his grip on power weakened.

With the presidential appeals for consensus falling on deaf ears so far, Finance Minister Evangelos Venizelos -- who is playing a leading role in efforts to create a government of national unity -- has some explaining to do soon.

Venizelos is under heavy pressure to tell fellow euro zone finance ministers in Brussels on Monday that Greece is on the way to reaching a broad national consensus on backing the 130 billion euro bailout deal agreed last month.

LONG-SUFFERING GREEKS

That deal, which imposes yet more austerity on the long-suffering Greek population, aims not only to save Greece from bankruptcy but also to prevent its problems plunging much bigger economies such as Italy and Spain into full-blown crisis.

Government spokesman Ilias Mossialos expressed optimism without saying what advances toward agreeing on a new government, if any, had been made. "The process could be completed by mid-week and it would be a good idea if it were completed as soon as possible," he told state television.

But the omens were not good. Newspapers were packed with speculation over various scenarios that could emerge from the behind-the-scenes talks. The Kathimerini daily called it "Haggling aboard the Titanic."

On the face of it, Venizelos may have little to offer at Monday's Eurogroup meeting in Brussels.

He has already received one lecture when German Chancellor Angela Merkel and French President Nicolas Sarkozy summoned him and Papandreou before a G20 meeting in Cannes last week.

The leaders made clear that Greece would receive not one cent more in European aid until it had signed up to the latest bailout, the second package since Athens had to go cap in hand to the European Union and IMF in May last year.

Greeks have fought the pay and pensions cuts, combined with higher taxes, demanded by the international lenders with a series of strikes and protests, some violent.

But the state is due to run out of money in December, when it has big debt repayments to meet, and by then needs the sixth installment of its existing EU/IMF bailout package.

GREECE MUST BANISH UNCERTAINTY

IMF Managing Director Christine Lagarde said last week she would make a recommendation on the next tranche to the IMF board "as soon as the referendum is completed, and all uncertainty removed."

Papandreou has already ditched the referendum plan, but Venizelos will have a hard time saying on Monday that all uncertainty has been removed, unless the talks leap forward.

A senior New Democracy official said Samaras was willing to negotiate a government of politicians, rather than one comprising technocrats, if Papandreou stepped aside.

Having demanded snap elections, he might be willing to discuss a date later than his preferred early December vote.

The source made no mention of who might lead the government but New Democracy is unlikely to accept any top member of the ruling PASOK party such as Venizelos.

The socialist and conservative plans to resolve the stalemate are also at odds.

Only a week ago the bailout deal seemed in the bag, but then Papandreou dropped the referendum bombshell, prompting widespread fear that Greece might be forced out of the euro and have to go it alone with a revived national currency.

"Europeans don't trust us anymore, they will throw us out," said Tassos Pagonis, a 48-year-old Athens taxi driver. "I hope we don't return to the drachma."

(Writing by David Stamp and Deepa Babington; Editing by Kevin Liffey)

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Greek PM wins vote, to meet president on coalition

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1 von 12. Der griechische Ministerpräsident George Papandreou (R) und Finanzminister Evangelos Venizelos applaudieren nach gewinnen Vertrauen in das griechische Parlament in Athen 5. November 2011.

Credit: Reuters/Yiorgos Karahalis

Von Harry Papachristou und Renee Maltezou

ATHEN | Samstag, 5. November 2011 1:57 morgens EDT

Athen (Reuters) - griechischen Premierminister George Papandreou überlebt ein Vertrauensvotum im Parlament am Samstag, Snap-Wahlen, die hätte Griechenlands Schulden Rettungsplan viel torpediert und entzündet die Wirtschaftskrise der Euro-Zone zu vermeiden.

Aber die Nation blieb mired in politischen, wirtschaftlichen und sozialen Aufruhr und Papandreou signalisiert, er würde zurücktreten, fordern eine neue Koalition, die 130 Mrd. Euro ($ 179 Milliarden) Rettungsaktion rammen durch das Parlament befassen und vermeiden die Nation, die in Konkurs gehen.

Papandreous sozialistische Regierung gewann mit 153 Stimmen in der 300 Abgeordneter und eine Rebellion von einige Dissidenten in seiner PASOK-Partei ausgeblieben, nachdem er darauf hingewiesen, dass ein Ende seiner Amtszeit als Premierminister war.

"Das letzte, was, dem ich interessiert, ist mein Beitrag. Ich interessiere mich nicht, auch wenn ich bin nicht wiedergewählt. Die Zeit ist gekommen, um eine neue Anstrengung... Ich hätte nie der Politik als Beruf gedacht,"sagte er Parlament vor der Abstimmung.

Papandreou sagte, dass eine Koalitionsregierung die Zustimmung der EU/IWF Bailout Deal, der Nation letzten finanziellen Lebenslinie, sichern sollten, die auch der Euro-Zone zentralen Pfeiler der Bloc größeren Volkswirtschaften verheerenden Wirtschaftskrise zu verhindern ist.

Die Führer Frankreichs und Deutschlands sagte Papandreou diese Woche, die Griechenland keinem Cent mehr Beihilfen erhalten würde wenn Griechenland genehmigen die Rettungsaktion, was bedeutet, dass der Staat Geld im Dezember ausgehen.

Papandreou sagte Parlament, die er würde an den griechischen Präsidenten am Samstag gehen, Bildung einer breiteren Regierung zu diskutieren, die gewährleisten würde, dass das Rettungspaket, fügte hinzu, dass er bereit war, zu diskutieren, die eine neue Regierung Kopf würde.

Das Treffen wird um 12.00 Uhr (6 Uhr EDT) stattfinden.

KEINE SCHNELLEN WAHLEN

Papandreou zurückgewiesen Anforderungen für schnelle Wahlen, wie von der Opposition. "Wahlen im Moment nicht nur gleich Katastrophe aber könnte nicht statt im besten Interesse der Menschen," sagte er.

"Es gibt eine Lösung. Unterstützen zufügen (EU-Rettungsaktion) mit einem pluralistischen Ansatz, ohne Wahlen, eine starke Regierung."

Masamichi Adachi, senior Economist bei JPMorgan Securities Japan, sagte das Hauptanliegen war, was passieren würde, als internationaler Geldgeber wieder in Athen in den nächsten Monaten zur Beurteilung des Fortschritts des Plans Sparmaßnahmen und "finden sie sie andernfalls wieder."

"Dies nur entfernt den Zeitpunkt für das eigentliche Problem drängt. Natürlich ist es begrüßen, dass Griechenland nicht Sie heute sprengen, aber es nicht das Problem löst. "

Griechenland hat von Qualen seit abgezogen wurde, kurz nachdem Papandreou 2009 macht gewonnen und ergab, dass das realen Haushaltsdefizit dreimal größer als die ursprünglichen Schätzungen, die von seiner konservativen Vorgänger löschte.

Internationale Investoren hat Angst, Griechenlands Fremdkapitalkosten stieg und Papandreou musste letztes Jahr noch bereit, zu erschwinglichen Preisen--die Europäische Union und der IWF verleihen nur Einrichtungen in der hand Kappe gehen.

Im Gegenzug forderten sie Welle nach der Welle der Ausgabenkürzungen, Steuern steigt und pension Kürzungen, die weit verbreitete Proteste auf den Straßen auf die griechischen Städte, mit blutigen Auseinandersetzungen zwischen Demonstranten und der Polizei in Athen.

Auf den Finanzmärkten sagte Analysten sein Sieg war Pyrrhus, und viele gewöhnliche Griechen sagte, dass sie mit byzantinischen politische Gerangel, die nicht ihre Grundbedürfnis für Arbeitsplätze und Cash Adressierung wurde enttäuscht wurden.

"Auch wenn er die Wahl gewonnen hat, beschäftigt er in einem Spiel von Brinkmanship... Für mich bedeutet lediglich, dass seine Tage an der Macht sind gezählt,", sagte Jurgen Odenius bei aufsichtsrechtlichen Fixed Income, in Newark, New Jersey, USA.

"Mindestens, hat aber das Schlimmste vermieden worden wo keine neue Regierung gebildet und Griechenland wird in Standard. So zumindest sind wir zurück, wo wir waren, vor."

Quellen sagten, dass Finanzminister Evangelos Venizelos gewonnen hat, die Unterstützung der Führer der einige kleineren Parteien eine neue Koalition zu unterstützen, die er Kopf würde. Quellen nahe an das Abkommen sagte die neue Regierung nennen würde vorgezogene Wahlen in ein paar Monate nach die Rettung gesichert hatte, der Nachrichtenagentur Reuters.

Die Führer der rechtsextremen LAOS Partei und anderen Mitte-Rechts Partei angegeben nach Papandreous Rede, dass sie in eine neue Koalition zusammenarbeiten würde.

Im Parlament, sagte Venizelos eine neue Regierung sollte herrschen bis Februar nächsten Jahres und rufen Sie dann Wahlen.

Oppositionsführer Andonis Samaras gezählt sein Nea Dimokratia aus der Koalition, sagen, dass Papandreou seine Forderung nach einer Regierung der nationalen Einheit zurückgewiesen hatte. "Herr Papandreou hat unseren Vorschlag abgelehnt. Die einzige Lösung Wahlen ", sagte er.

Papandreou provoziert Aufruhr zu Hause und im Ausland am Montag, wenn er ein Referendum über die Rettungsaktion angekündigt, vereinbarten von Führern der Euro-Zone erst letzte Woche.

Unter großen nationalen und internationalen Druck Rückzieher er auf eine Abstimmung, die auch das Angebot abgelehnt haben könnte potenziell Untergang Euro Zone Seminarleiter Versuche die Schuldenkrise, die verheerende Volkswirtschaften wie Italien und Spanien zu stoppen.

Die Regierung angekündigt offiziell bereits am Freitag, das Referendum nicht vorangehen würde.

(Zusätzliche Berichterstattung von Reuters Athen Bureau; Schreiben von David Stamp)

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Greek PM's hold on power slips despite bailout bravado

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1 of 6. Greek Prime Minister George Papandreou delivers a speech to socialist lawmakers from his party in Athens November 3, 2011.

Credit: Reuters/Yiorgos Karahalis

By Dina Kyriakidou and Lefteris Papadimas

ATHENS | Thu Nov 3, 2011 6:02pm EDT

ATHENS (Reuters) - Greek Prime Minister George Papandreou defied demands on Thursday that he resign over his decision to hold a referendum on the nation's euro zone bailout deal, calling instead for his party to unite for a confidence vote in the government.

But Papandreou's hold on power was slipping after two turbulent years, regardless of whether he wins the parliamentary vote. Government sources said he struck a deal with his ministers to step down and hand over to a negotiated coalition government if they helped him win on Friday.

Papandreou fought back off the ropes, saying the referendum plan which provoked uproar at home and around the euro zone had forced the opposition to accept the 130-billion-euro ($179 billion) rescue and its conditions -- a new wave of deep austerity.

But his public bravado appeared to mask an acceptance that his term as socialist premier, when he has imposed wave after wave of austerity, would come to an end after he had negotiated a coalition deal with the conservative opposition -- provided he survives Friday's vote, the government sources said.

Ministers involved in striking a deal with Papandreou were led by Finance Minister Evangelos Venizelos, saying he should go for the sake of their PASOK party, said the sources, who had knowledge of Thursday's meeting of the socialist cabinet.

LEAVE CALMLY

"He was told that he must leave calmly in order to save his party," one source told Reuters on condition of anonymity. "He agreed to step down. It was very civilized, with no acrimony."

Papandreou admitted he had made a mistake in calling on Monday for the referendum on a bailout package agreed with the euro zone only last week. German and French leaders summoned him to Cannes on Wednesday where they demanded Greece keep to the deal or decide whether it wanted to stay in the euro zone.

"Venizelos told him he must make a graceful exit both for his sake and for the party's sake and that the ministers would help him do it," the source said. "This is provided he survives the confidence vote, which is not at all certain."

Greeks have fiercely opposed the spending cuts, tax rises and job losses which have been the price of financial aid from the IMF and the European Union to tackle the nation's huge debt and budget deficit. This has led to a wave of strikes and outbreaks of violence on the streets of Athens.

Analysts declared the referendum idea dead, a relief to euro zone leaders. A no vote would have sunk a deal which is supposed to prevent Greece's debt crisis from dragging down far bigger European economies such as Italy and Spain.

But the analysts also questioned whether Papandreou can survive Friday's confidence vote.

Events in Athens gathered speed a day after Papandreou held the meeting in Cannes with the German and French leaders, who told him Greece would not receive a cent more in aid until it voted to meet its commitments under the bailout deal.

The specter of a precipitous Greek default and euro exit hung over a meeting of G20 leaders beginning in Cannes on Thursday.

The French Riviera summit had been meant to focus on reforms of the global monetary system and steps to curb speculative capital flows but the shock waves from Greece upended the talks.

DODGING DEMANDS

Papandreou earlier dodged demands for his resignation when he addressed his PASOK party. But opposition leader Antonis Samaras said Papandreou had told him he would not quit.

Papandreou defended putting the bailout to the Greek people, and flatly rejected suggestions by European leaders the nation had to decide simply whether it wanted to stay in the euro or leave it.

"We would never choose to hold a referendum on whether we leave or stay in the euro. It's not something you can ask the Greek people about. It is self-evident (they want to stay)," he told a meeting of lawmakers of his socialist party PASOK.

"I trust the wisdom and the maturity of the Greek people and I trust them ... I'm not saying this romantically, I deeply believe in democracy."

He did offer to drop the referendum if the opposition backed the bailout in parliament, trying to turn the tables on the conservative New Democracy party which called for him to make way for a transitional government and early elections.

He hailed his referendum proposal for forcing Samaras to drop his long-standing opposition to the bailout package.

"I am pleased that opening the discussion through the referendum delivered a positive, creative shock," he said. "If the opposition comes to the table to back the bailout, a referendum is not needed."

Papandreou called for his party to rally behind him in the confidence vote. "Tomorrow's vote is of great importance. It will guarantee how we will continue, our next steps," he said. "There must be stability of this parliamentary group regardless of whatever discussion we hold with other parties."

Papandreou is in grave danger of losing the parliamentary vote of confidence on Friday as defections shrink his support. One PASOK lawmaker said she would not support the government, cutting its majority for that vote to just one.

PASOK has 152 deputies in the 300-member parliament. Lawmaker Eva Kaili announced she would stay in the party but refused to support the confidence vote, meaning Papandreou could count at most on the support of 151 deputies.

One analyst rated Papandreou's chances as slim. "The prime minister's position is very difficult, since he chose not to respond to the opposition's proposal for a transitional coalition government. Therefore I believe that it is unlikely that he will win the vote tomorrow," said the head of ALCO pollsters, Costas Panagopoulos.

"This day had one very positive result, the withdrawal of the prime minister's proposal for a referendum. This is over, it's a dead issue. This is very positive for Greece and a great relief."

BREAKING RANKS

Venizelos broke ranks with Papandreou early in the day, coming out against holding the referendum after the meeting with the German and French leaders.

Venizelos, one of the most powerful men in the PASOK government, originally supported Papandreou's plan. He changed his mind after he and Papandreou attended the emergency summit in Cannes on Wednesday with German Chancellor Angela Merkel and French President Nicolas Sarkozy.

A finance ministry source told Reuters on condition of anonymity that Venizelos believed the vote on the bailout should not be held while eight billion euros in immediate funding to keep Greece afloat still had to be secured.

"Under these conditions a referendum is exactly what the country does not need. He would not have objections if all our pending issues such as the loan installment and the completion of the bailout plan had been sorted out," the source said after the meeting with Merkel and Sarkozy.

"It was a very difficult meeting," the source added. ($1 = 0.725 Euros)

(Additional reporting by Reuters Athens bureau; Writing by David Stamp; Editing by Sophie Hares)

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Exclusive: Greek PM can deliver Coalition

German Chancellor Angela Merkel (L) and Greek Prime Minister George Papandreou to attend a meeting of the BDI (Federational German industry) in Berlin 27 September 2011.

Credit: Reuters/Tobias Schwarz / files

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