EuroZone Crisis Update: Greek PM May Step Down For GNU

The political intrigue unraveling in Greece is reminiscent of the last minute deal struck by the Obama administration with a bipartisan US House of assembly that almost caused the US government to default on its debt obligations in the summer.

After announcing a referendum and sending political tremors through the bailout plan agreed by Euro Zone leaders late October, the Greek Prime Minister has agreed to step-down from power.

Papandreou is in talks with the main opposition leader, Antonis Samara of the New Democracy Party. The Prime Minister’s intent is to forge a government of national unity that will tackle the country’s economic woes, including endorsing the Eurozone’s bailout package that will avert a major financial meltdown in Europe and other developed and emerging countries.

Samara has said that he is in line with the Prime Minister’s proposal; however for his party to fully ratify the initiative, Papandreou must first resign.

According to Reuters, deputy government spokesman Angelos Tolkas has said “I believe that we are very close to reaching a consensus.”

Sources close to the political negotiations believe that the government of national unity will be led by current Finance Minister Evangelos Venizelos.

In any case, the government would do well to be mature enough to reach a consensus quickly as any further delays will affect the ratification of the next installment of bailout money needed to pay public sector salaries and meet financial obligations to the country’s creditors which include big European banks, hedge funds and other institutional investors.