Greece’s prime minister, George Papandreou, has offered his resignation in exchange for a unity government to be formed in Greece, according to Reuters.
Papandreou’s party, the socialists, are now in talks with opposition parties to form a unity government. It’s likely the objective of this unity government is a cabinet with a consensus on future austerity measures.
The conservatives appear to be holding out for a Papandreou resignation to agree to a unity government.
From the AP (via ABC News):
“The most important member of a ship’s crew is the captain, and the captain has to go,” prominent conservative deputy Theodoros Karaoglou said. “If we joined forces, we could go to our (creditors) together to negotiate and the results of course would be better.”
It’s vital for Greece to pass this new round of budget cuts and privatizations, if it wants to receive its second bailout from the European Union. EU officials are stalling on the bailout, with the date of the deal now pushed back to July.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.