Greek party leaders name Lucas Papademos as Prime Minister

Greek party leaders name Lucas Papademos as Prime Minister

Lucas Papademos, Interim Prime Minister of Greece

Greek party leaders have agreed to name Lucas Papademos, a former European Central Bank vice-president, as prime minister of a new interim government until early elections, the president's office said.

Greek President Karolos Papoulias' office said in a statement after talks between political leaders and Papademos on Thursday that “the president, after recommendations by political leaders who attended the meeting, has instructed Lucas Papademos to form a new government." 

 
George Papandreou, the outgoing prime minister, earlier met key political leaders for negotiations at the presidential mansion in Athens, after which the group announced that the new government will be sworn in on Friday.

Crucial cross roads

In his first comments as prime minister, Papademos, a former head of the Greek central bank, said the country was at a crucial crossroads and pledged to keep it within the euro single currency bloc.

"The Greek economy is facing huge problems despite the enormous efforts made... The course will not be easy," he said.

"I am convinced that the country's participation in the eurozone is a guarantee for monetary stability. We must all be optimistic about the final result, as long as we are united," he stressed.

Relief for Greece

Papademos, 64, was seen by many, both inside Greece and internationally, as the best choice to steer Greece through its worst post-war economic crisis due to his technocratic credentials and perceived financial expertise.

He will lead a coalition until elections which are expected to be held in February, and his mission for the three-month term is no less than saving Greece from bankruptcy.

At best, the hope is that Papademos' experience of global financial circles and his non-involvement in the partisan politics of Greece will lend themselves to calm jittery markets and steer Greece towards stability.

Papademos was the governor of the Bank of Greece from 1994 to 2002 and vice-president of the European Central Bank from 2002 to 2010.

Greece's stock market had jumped sharply when Papademos arrived at the presidential palace to begin talks with the head of state and political leaders.

His appointment was held up for four days amid political squabbling and over demands he reportedly made about holding elections later than the February date pencilled in.

The interim government will be tasked to secure continued bailout funding and a new $177bn rescue package for Greece from eurozone partners and the International Monetary Fund.

ALJAZEERA/Williams