Greece Agrees on Lucas
Papademos, Former ECB VP as PM
November 10, 2011
Greece has named a former top
official of the European Central Bank as interim prime minister after
days of intense talks about a coalition government the country hopes
will help it get out of a deep financial crisis.
Lucas Papademos, the former vice president of the ECB, will head an
interim "unity" government that hopes to implement a new European
bailout plan and ensure that Greece receives the next installment of its
existing international bailout loans to avoid a debt default.
Major European stock exchanges reported gains Thursday on hopes that
Greece and Italy were nearing breakthroughs in plans for new governments
to help lead them out of the debt crisis.
Italian Prime Minister Silvio Berlusconi, who has promised to step down
after parliament passes tough austerity measures, appeared Thursday to
endorse the man widely seen as his replacement, leading economist Mario
A former European Union commissioner, Monti is expected to head a new
government that hopes to reduce Italy's $2.6 trillion debt.
leaders have urged both countries to hasten with unpopular economic
reforms aimed at saving them from bankruptcy, which would further
destabilize the euro and fuel turmoil in the already unstable global
Stocks had dropped Wednesday and opened in negative territory across the
globe Thursday following news that Italy's main borrowing rate soared
past 7 percent - higher than the rate that forced Greece, Ireland and
Portugal to ask for bailout loans.
Italy is the eurozone's third largest economy and a bailout to prevent a
default on its massive debt - nearly 120 percent of its GDP - would be
too expensive for the 17-nation common currency bloc to bear.
The EU on Thursday warned that the 17-country eurozone could slip into
another recession next year. The EU says the eurozone will grow by only
0.5 percent in 2012, down from its earlier prediction of 1.8 percent.