Reuters - Greece named former European Central Bank vice-president Lucas Papademos on Thursday to head a crisis government, ending a chaotic search for a leader to save the country from default, bankruptcy and an exit from the euro zone.
NICOSIA — Cypriot President Nicos Anastasiades, seeking a last-minute reprieve from financial meltdown at talks in Brussels on Sunday, has a “very difficult task” ahead of him if he is to save the island’s economy, a government spokesman said.
With Cyprus facing a Monday deadline to avert a collapse of its banking system and potential exit from the euro, late night talks in Nicosia to seal a bailout from the EU and International Monetary Fund broke up without result.
By Peter Boone and Simon Johnson
In every economic crisis there comes a moment of clarity. In Europe soon, millions of people will wake up to realize that the euro-as-we-know-it is gone. Economic chaos awaits them.
Greek default drama is much like the movie Groundhog Day. If you prefer a quote from Yogi Berra instead, then please consider It's déjà vu all over again.
Every day for weeks we have heard a "deal is close". Moreover, on multiple occasions at the end of the week we were informed Greece "had" to reach agreement over the weekend or Greece would default. Let's hope this time someone really means it.
Lucas Papademos, a former vice-president of the European Central Bank who will be sworn in as prime minister of a Greek unity government on Friday, faces the immediate task of securing funds by implementing budget cuts to avert an economic collapse.
Greece inched agonizingly to a deal on naming a new leader and crisis team Tuesday to haul the debt-wracked country back from the brink of bankruptcy, under mounting pressure from Brussels and Washington.As talks dragged on into a second day, outgoing socialist Prime Minister George Papandreou was to hold an emergency cabinet meeting at 12 pm (1000 GMT).Former European Central Bank vice-president Lucas Papademos still appeared favourite to accept the poisoned chalice, although a series of demands he made to take the job apparently prevented him from being named on Monday.