EuroZone Crisis Update: Greece Gets Interim Prime Minister in Former ECB Chief

After three days of intense negotiations with the main opposition parties, Greece has named a transitional interim Prime Minister.

Lucas Papademos, an academic and former European Central Bank vice president has been chosen to steer the country out of its sovereign debt crisis and preserve its membership in the EuroZone.

Greek President Karolos Papoulias stated, “It was agreed that the goal of the new government is to implement decisions relating to the Oct.26 summit and implement the economic policy connected to these decisions.”

After the announcement, Mr Papademos said his job “will not be easy but I am convinced the problems will be solved… in a quicker and more efficient way if there is unity and consensus”.

The interim government will be selected by a committee comprising members selected by the two main opposition parties. The new government will be sworn in tomorrow at 1200 GMT.

The decisions to be implemented by Papademos will include the €130 Billion bailout agreed by European leaders last month, after lengthy weeks of negotiation.

Markets in Europe are responding positively to the deal. At press time, the Stoxx 50, FTSE 100, and DAX were up 1.45%, 0.56%, and 1.52% respectively. The Euro had also gained 0.752% on the dollar.

The resurgence of markets reflects a renewed confidence in Greece’s ability to tackle its economic challenges by market participants.

This confidence is largely attributed to the fact that Papademos is a tested economist and not by any means a politician. He has the sound academic knowledge on financial matters and expertise as a former ECB Vice President to take the necessary steps to lead Greece back on the path to economic stability.