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Rediff News  All News  » News » Greece PM agrees to step down over financial crisis

Greece PM agrees to step down over financial crisis

November 07, 2011 12:17 IST

Greece's political leaders have agreed to form a national unity government after the nation's embattled Prime Minister George Papendreou agreed to step down half way through his four-year-term under pressure from a European ultimatum.

According to the Telegraph, an agreement in principle was reached between Papandreou and Antonis Samaras, the conservative opposition leader, after a meeting with the president on Sunday.

The two men will meet on Monday to decide the composition of the new government that will take office after Papandreou formally tenders his resignation.

"There will be a new communication between the prime minister and the opposition leader on who will be the leader of the new government," said a statement.

The finance ministry said that the interim government would lead the country until elections, which could be held on February 19.

The interim government is expected to be in place for about three to four months in order to ensure a new European debt deal and secure a vital instalment of bailout loans that Greece needs to avoid default, the paper said.

The initial agreement came after a week of intense political drama sparked by Papandreou's announcement that he was taking the debt deal to a referendum.

Source: ANI