Greek PM steps down for unity government

Nov 07, 2011 |

Athens

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Greek Prime Minister George Papandreou on Sunday agreed to step down and political leaders will meet tomorrow to form a new unity government to end the political crisis, the president's office said.

The deal was reached after a meeting lasting nearly two hours between Papandreou, main opposition leader Antonis Samaras and President Carolos Papoulias, the Greek head of state.

"An agreement was reached to form a new government to immediately lead the country to elections after ratifying the decisions taken by the European Council on October 26," the president's office said in a statement.

This is a reference to a hard-fought EU deal reducing Greece's monster debt by nearly a third that had been placed in jeopardy by the political uncertainty in Athens, with European leaders threatening to withhold loan funds shielding the country from a looming bankruptcy.

"Prime Minister George Papandreou has already stated that he will not lead the new government," the president's statement added.

"Tomorrow there will be a new communication between the prime minister and the head of the opposition on the new prime minister and the new government. Tomorrow the president will hold a meeting between political leaders," it added.

The Communist party immediately announced they would boycott Monday's talks.

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