REPORT: Papademos Is Considering Resigning If He Can't Get Support For New Austerity Measures

Local Papademos

Photo: AP

The pressure is mounting on Greek PM Lucas Papademos ahead of a meeting tomorrow in which he’ll try to win coalition support for a new round of austerity measures that the country must pass in order to receive its second bailout.In fact, Greek newspaper eKathimerini reports that Greece’s new PM is even considering resigning if he cannot garner support from PASOK’s George Papandreou, New Democracy’s Antonis Samaras, and Giorgos Karatzaferis of the Popular Orthodox Rally (LAOS).

According to Skai TV, that resignation would come on Monday if party leaders failed to agree to a deal.

The motive for this resistance is not surprising. From the eKathimerini report: “Sources [said] the troika is demanding that the minimum wage of 751 euros per month (gross) be reduced and that labour costs in the private sector drop by 25 per cent in a bid to help Greece regain competitiveness.” labour unions and representatives of private employers have publicly rejected these measures.

Not to mention that the bailout will require Greece to get its public debt-to-GDP ratio below 120 per cent by 2020—a monumental task if Greece’s economy continues to contract.

Government spokesman Pantelis Kapsis has denied rumours that Papademos is threatening resignation, according to Bloomberg. However, one never knows in Greece, where everything seems to be going wrong. Similar rumours circulated ahead of former PM Papandreou’s resignation in November.

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