Outside the Beltway

Greek Prime Minister to Resign

Greek Prime Minister George Papandreou will resign after the makeup of the nation's new coalition government is decided

James Joyner · Sunday, November 6, 2011 · 1 comment

Yet another twist in the bizarre crisis in Greece:

CNN (“Greek PM to resign after coalition government formed“):

Greek Prime Minister George Papandreou will resign after the makeup of the nation’s new coalition government is decided, officials said Sunday.

Sunday’s Cabinet meeting will be the last with Papandreou as prime minister, a government spokesman said in a statement. The meeting will focus on issues relating to Monday’s Euro group meeting, at which Finance Minister Evangelos Venizelos will represent Greece, the statement said.

A spokesman for Papandreou’s Socialist PASOK party said the prime minister will resign after the government is announced.

Venizelos is likely to remain in his post as finance minister in a new government, sources told Greek television. Candidates for the prime minister’s job include Petros Moliviatis and Loukas Papaimos, according to Greek television.

The new government will have a life of four months, according to Greek television, citing sources, and elections will be held in early spring.

The announcement comes amid economic and political turmoil in Greece and the formation of a coalition government tasked with saving the nation from bankruptcy.

A Greek default could drag down larger European economies, in particular those of Italy and Spain, as well as struggling Portugal and Ireland, analysts warn.

It’s by no means clear what comes next here. Forming a new government out of a slew of tiny parties is going to be a neat trick, especially given the total lack of consensus as to what to do about the debt crisis.