Markets breathed a collective sigh of relief once outgoing Greek PM George Papandreou’s referendum plan and his government won an important confidence vote.But was this just a temporary reprieve from political turmoil?
Political leaders from top political parties have been trying to hammer out a deal for a new national unity government in Greece, and we’ve repeatedly heard that leaders are on the verge of releasing the name of the new PM. There has still been no end to the talks.
To add insult to injury, the leader of the opposition New Democracy party—Antonis Samaras—is now refusing to sign a commitment to implement the economic reforms contingent for dispersion of the bailout package, according to Greek newspaper ekathmirini.
EU leaders said that with such a commitment the next tranche of bailout aid could be dispersed as soon as November. Current finance minister Evangelos Venizelos told reporters earlier today that Papandreou, Samaras, the governor of the Bank of Greece, the new pime minister and the finance minister would all sign that commitment.
Former Vice President of the European Central Bank Lukas Papademos has surfaced as the frontrunner to be tapped for Greece’s top post. Negotiations are ongoing.