Greece opposition chief demands PM's resignation over debt crisis
Greece opposition chief demands PM quits over debt crisis
(about 1 hour later)
Greece's main opposition leader has again insisted that Prime Minister George Papandreou must stand down to break political deadlock over the country's debt crisis.
Greece's main opposition leader has repeated calls for PM George Papandreou to resign to break the political deadlock over the debt crisis.
Antonis Samaras of the New Democracy party said after meeting the president that if the PM resigned, "everything will take its course".
Mr Papandreou is seeking to build a government of national unity, but Antonis Samaras of the New Democracy party says the PM must resign first.
He did not state whether he would join a government of national unity as proposed by Mr Papandreou, but said he was "determined to help".
Some reports say a coalition deal and Mr Papandreou's resignation could be announced as early as Sunday evening.
He has previously labelled the PM "dangerous" for Greece and demanded immediate elections.
An emergency cabinet meeting has been scheduled for 16:00 (14:00 GMT).
But Mr Papandreou says elections must wait until a vital EU bailout package has been approved.
Mr Samaras did not state explicitly whether he would join a government of national unity, but said that if the PM resigned, "everything will take its course".
Emerging from a short meeting with President Karolos Papoulias, Mr Samaras said: "As long as Papandreou has not decided what he wants to do, it is blocking any solution."
He has previously labelled Mr Papandreou as "dangerous" for Greece".
Mr Samaras has backed the idea of a caretaker government to secure parliamentary approval of a new eurozone bailout package, but has insisted that early elections are called.
Mr Papandreou says early elections would "have catastrophic consequences for the economy and for the Greek people".
Two opinion polls published on Saturday suggested that Greeks would prefer the option of a national unity government to snap elections, Reuters news agency reported.
Two opinion polls published on Saturday suggested that Greeks would prefer the option of a national unity government to snap elections, Reuters news agency reported.
'Dangerous'
'High stakes game'
President Karolos Papoulias urged the opposing sides to overcome their differences and work together to resolve a crisis that has jeopardised the entire euro project.
President Papoulias has been urging the opposing sides to overcome their differences and work together to resolve a crisis that has jeopardised the entire euro project.
"Consensus is the one and only way," Mr Papoulias told the prime minister on Saturday, a few hours after Mr Papandreou had narrowly won a vote of confidence in parliament.
"Consensus is the one and only way," Mr Papoulias told the prime minister on Saturday, a few hours after Mr Papandreou had narrowly won a vote of confidence in parliament.
However, Mr Papandreou and Mr Samaras have offered radically different plans on how to tackle the political crisis.
The BBC's Mark Lowen in Athens says this has now become a high stakes game of political brinkmanship, and nobody can tell who will blink first.
Mr Samaras insisted snap elections, not a unity government led by Mr Papandreou, was the way forward.
But politicians must find a solution in order to ratify the next 8bn euro ($11bn) instalment of the eurozone bail-out package by mid-December, enabling them to pay public sector salaries and pensions and avoid bankruptcy.
"We have not asked for any place in his government," Mr Samaras said on Saturday. "All we want is for Mr Papandreou to resign, because he has become dangerous for the country. We insist on immediate elections."
class="dslideshow-header">What went wrong in Greece?
class="dslideshow-entry">
Greece's
economic reforms, which led to it abandoning the drachma as its currency in favour of the euro in 2002, made it easier for the country to borrow money.
class="dslideshow-entry">
Greece
went on a big, debt-funded spending spree, including paying for high-profile projects such as the 2004 Athens Olympics, which went well over its budget.
class="dslideshow-entry">
The
country was hit by the downturn, which meant it had to spend more on benefits and received less in taxes. There were also doubts about the accuracy of its economic statistics.
class="dslideshow-entry">
Greece's
economic problems meant lenders started charging higher interest rates to lend it money. Widespread tax evasion also hit the government's coffers.
class="dslideshow-entry">
There
have been demonstrations against the government's austerity measures to deal with its debt, such as cuts to public sector pay and pensions, reduced benefits and increased taxes.
class="dslideshow-entry">
In
July 2011, Eurozone leaders and the IMF agreed to lend Greece 109bn euros ($155bn, £96.3bn) - a year after it was granted access to a 110bn euro rescue package.
class="dslideshow-entry">
Eurozone
ministers were worried that if Greece was to default there would be a risk of contagion to other economies. They hope the package will resolve Greece's debt crisis and shore up the euro.
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But Mr Papandreou said early elections would "have catastrophic consequences for the economy and for the Greek people".
There has been speculation that a new governing coalition could be led by Finance Minister Evangelos Venizelos, after Mr Papandreou made clear that he would stand aside as PM if it would make progress easier.
He said a unity government needed several months in order to save the country from bankruptcy and safeguard its membership of the eurozone.
"Co-operation is necessary to guarantee - for Greece and for our partners - that we can honour our commitments," Mr Papandreou said at his meeting with President Papoulias.
"I am concerned that a lack of co-operation could trouble how our partners see our will and desire to remain in the central core of the European Union and the eurozone."
Default risk
There has been speculation that a new governing coalition could be led by Finance Minister Evangelos Venizelos, after Mr Papandreou hinted that he would stand aside as PM if it would make progress easier.
What went wrong in Greece?
Greece's economic reforms, which led to it abandoning the drachma as its currency in favour of the euro in 2002, made it easier for the country to borrow money.
Greece went on a big, debt-funded spending spree, including paying for high-profile projects such as the 2004 Athens Olympics, which went well over its budget.
The country was hit by the downturn, which meant it had to spend more on benefits and received less in taxes. There were also doubts about the accuracy of its economic statistics.
Greece's economic problems meant lenders started charging higher interest rates to lend it money. Widespread tax evasion also hit the government's coffers.
There have been demonstrations against the government's austerity measures to deal with its debt, such as cuts to public sector pay and pensions, reduced benefits and increased taxes.
In July 2011, Eurozone leaders and the IMF agreed to lend Greece 109bn euros ($155bn, £96.3bn) - a year after it was granted access to a 110bn euro rescue package.
Eurozone ministers were worried that if Greece was to default there would be a risk of contagion to other economies. They hope the package will resolve Greece's debt crisis and shore up the euro.
BACK {current} of {total} NEXT
Greece's mounting debt crisis and the implementation of austerity measures have proved hugely unpopular with the public, prompting widespread protests and strikes.
Greece's mounting debt crisis and the implementation of austerity measures have proved hugely unpopular with the public, prompting widespread protests and strikes.
But if Greece defaults on its debts, the cost of borrowing would rocket for other countries, potentially leading to a new banking crisis.
But if Greece defaults on its debts, the cost of borrowing would rocket for other countries, potentially leading to a new banking crisis.
On Monday, Mr Papandreou shocked EU partners and sent markets into turmoil by calling for a national referendum on the deal which they thought had been secured.
On Monday, Mr Papandreou shocked EU partners and sent markets into turmoil by calling for a national referendum on the deal which they thought had been secured.
The vote was called off just days later, but only after triggering the wider financial and political crisis.
The vote was called off just days later, but only after triggering the wider financial and political crisis.
Attention has also been focusing on Italy's huge debt burden, with fears that it could face its own crisis.
On Saturday, German Chancellor Angela Merkel said it could take a decade for Europe to resolve its debt crisis and that this could only be done by countries placing legal limits on their debts.
"Everyone in Europe must make an effort to achieve all that is required," she said in comments posted on her website.
European Commission President Jose Manuel Barroso acknowledged it was possible that Greece could end up leaving the eurozone, but said it was "in their interests" to stay.
"I think the principle of a country leaving the euro is not a good one. But at the end, it depends on them being able to implement the decisions taken together," he said.
